On August 28, 2026, OpenAI said it had notified SpaceX that it intends to wind down the contract that supplies OpenAI models to the AI coding tool Cursor[1]. The proposed shutoff date is November 12, 2026. Cursor now sits inside SpaceX following its acquisition, and OpenAI says it cannot be confident that its technology will be used within the terms of service.
Notice Served, Shutoff Set for November 12
According to OpenAI, the notice uses the maximum notice period the contract allows[1]. Rather than cutting access immediately, the company picked the latest possible date so developers can keep reaching OpenAI models through Cursor for as long as possible.
That does not mean nothing changes before then. While OpenAI is holding the cancellation to the latest date it can, it will not provide future models to Cursor[1]. Existing models keep running until November 12, but anything new released in the meantime will not show up as an option inside Cursor.
The Reason: No Confidence That the Terms Will Be Honored
OpenAI grounds the decision in its own experience with Elon Musk's companies breaking contracts[1]. When working with a large partner such as SpaceX, OpenAI says it normally relies on custom contracts to ensure compliance with its terms of service and to keep the integration safe at scale.
The post names two specific incidents. After Musk acquired Twitter, now part of SpaceX, the company broke the terms of its contract with OpenAI. And earlier in 2026, Musk admitted under oath that xAI, also now part of SpaceX, had violated OpenAI's terms of service[1]. Placing those side by side, OpenAI concluded that it cannot be confident about future compliance.
The custom agreement with Cursor included a clause giving OpenAI a limited window to cancel after a change of control[1]. The decision was made while that window was still open.
A Call Made Ahead of the Next Model, Astra
OpenAI cites one more factor: Astra, the model it is preparing[1]. As AI capabilities advance, the company says it carries a new level of accountability for ensuring its technology is used in line with its terms, and that responsibility fed into this decision.
SpaceX announced its acquisition of Cursor in June 2026 in an all-stock deal worth about 60 billion USD (roughly 9.6 trillion yen) and closed it in August[2]. Cursor was built by Anysphere, founded in 2022, and now sits inside the AI division SpaceX formed after folding in xAI. From OpenAI's side, a partner moved into the core of a rival camp. ※1 USD = 160 JPY
Four Years of Work, and Developers in the Middle
OpenAI notes that it has worked with Cursor for nearly four years and expresses respect for the team, the product, and what they built for the developer community[1]. It also states plainly that the people most affected are the developers who rely on OpenAI models inside Cursor, and says it is ready to go above and beyond to support them through the transition[1].
No specifics of that support have been published. For teams with Cursor embedded in daily work, the operative facts are the November 12 deadline and the fact that new models will not arrive before it. Reviewing the development environment, model choices included, is now something to schedule somewhere before November.
Summary
On August 28, 2026, OpenAI notified SpaceX that it will wind down model access for Cursor, proposing November 12 as the shutoff date. The reason is a lack of confidence in compliance, based on past contract violations by Musk's companies. OpenAI is using the full notice period the contract allows, but no future models will reach Cursor. Developers building on OpenAI models inside Cursor are the ones affected, and OpenAI says it will help them move.
Source: https://openai.com/index/our-decision-on-cursor-following-its-acquisition-by-spacex/
