OpenAI declared it will end its contract and stop supplying AI models to Cursor after SpaceX completed the acquisition of Cursor's parent company, Anysphere, in August 2026 [1, 2, 3, 4, 5, 6]. The termination date is set for November 12, 2026, the latest allowed under the contract clause triggered by change of control [1, 2, 3, 4, 5, 6].
OpenAI cited a lack of confidence that SpaceX will comply with its terms of service as the primary reason for ending the agreement, referencing past contract violations involving Elon Musk's companies [1, 2, 3, 4, 5, 6]. OpenAI also mentioned ensuring its upcoming Astra AI model meets usage standards contributed to the timing decision [3, 4, 6].
SpaceX finalized the roughly $60 billion all-stock purchase of Anysphere in mid-August, after announcing the deal in June 2026 [2, 4, 6]. Cursor CEO Michael Truell acknowledged that approximately 5% of Cursor’s user traffic currently relies on OpenAI models. He said, “OpenAI models serve about 5% of Cursor user traffic, and we’re speaking with the OpenAI team to resolve this. 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.” [2]
Following the termination announcement on August 28, Elon Musk responded on social media dismissively. He wrote, “I couldn’t care less. Scam Altman and Greg Stockman are utterly untrustworthy. They stole an open source nonprofit.” [1, 2, 4, 5, 6]
OpenAI and Elon Musk have a longstanding rivalry, including Musk’s $150 billion lawsuit filed in 2024 alleging OpenAI breached its founding nonprofit mission. That suit was dismissed but remains under appeal [1, 2, 3, 4, 5, 6].
After OpenAI ceases model supply, Cursor plans to switch to alternative AI providers like Anthropic to maintain operations [5, 6]. The termination on November 12 is set as the contractually mandated deadline tied to the change of ownership clause [1, 2, 3, 4, 5, 6].
