OpenAI to wind down Cursor model contract after SpaceX acquisition, shutoff set for November 12

OpenAI said on August 28 that it has notified SpaceX of its intention to wind down the contract providing OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026.

OpenAI said it is giving the maximum notice provided by its contract to maximize the time developers can retain access to OpenAI models through Cursor, and described the decision as incredibly tough.

OpenAI called the decision tough, explaining that it cannot be confident SpaceX will use its technology within its terms of service, based on its experience with Elon Musk's companies violating contracts.

The statement notes that after Musk acquired Twitter, now part of SpaceX, the company broke the terms of its contract, and that Musk admitted under oath earlier this year that xAI, also now part of SpaceX, had violated OpenAI's terms of service.

OpenAI's custom agreement with Cursor provides a limited window to cancel after a change of control, and with AI capabilities advancing, the company says it has a new level of accountability to ensure its upcoming model, Astra, is used in accordance with its terms, so it chose the latest cancellation date while not providing future models to Cursor.

OpenAI says it has worked with Cursor for nearly four years and holds enormous respect for the team and product, while acknowledging that developers who rely on OpenAI models in Cursor are the people most affected, and promising support through the transition.

The move follows SpaceX's acquisition of Cursor, meaning Cursor users will lose direct access to OpenAI models once the contract ends.

The decision highlights how dependent AI coding tools have become on upstream model suppliers, and the risks that change-of-control events pose to enterprise AI contracts.