OpenAI announced on August 28 it will end its agreement to provide AI models to Cursor, a coding tool company recently acquired by SpaceX [1, 2, 3, 4, 5, 6, 7]. The agreement is set to cease by November 12, 2026, as OpenAI cited a lack of confidence that SpaceX will use its technology according to the terms of service [1, 2, 3, 4, 5, 6, 7]. An OpenAI spokesperson said, "We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts" [1].

SpaceX completed its acquisition of Cursor's parent company Anysphere earlier this month, having first announced the $60 billion all-stock deal in June 2026 [1, 2, 3, 4, 5, 6]. Cursor offers AI models developed with SpaceXAI, including Grok, as well as access to models from OpenAI and competitors such as Anthropic and Google [1, 3, 4, 5, 6].

The termination escalates the high-profile feud between Elon Musk and OpenAI CEO Sam Altman. Musk sued OpenAI and Altman earlier this year seeking $150 billion, accusing them of betraying OpenAI's original non-profit mission, but a federal jury dismissed the case as filed too late [1, 3, 4, 5, 6, 7]. OpenAI also noted that X (formerly Twitter), now owned by SpaceX, breached terms of its contract after Musk's acquisition [1, 3, 4, 5, 6]. OpenAI stated it uses custom contracts with large partners like SpaceX to ensure compliance and safety at scale [1, 4, 5].

Michael Truell, Cursor co-founder and now a SpaceX executive, said they are in talks with OpenAI to navigate the situation. He added, "Cursor was one of the very first users of OpenAI, we’ve worked closely with their team for years, and we’ve trusted their platform to be neutral infrastructure for our business" [1, 4, 5, 6].

OpenAI also indicated it will not provide future AI models to Cursor, including the upcoming Astra model [3]. Elon Musk responded dismissively on social media, accusing Altman and OpenAI president Greg Brockman of being untrustworthy and "stealing a nonprofit organization" [7].

The formal end date for OpenAI’s provision of AI models to Cursor is November 12, 2026 [1, 2, 3, 4, 5, 6, 7].