OpenAI has told SpaceX (NASDAQ:SPCX) it will end the arrangement that supplies OpenAI models to the coding product Cursor, after SpaceX completed its purchase of the company behind the tool.
The proposed cutoff is November 12, 2026. OpenAI said it is using the longest notice period allowed under the contract so that developers who rely on those models inside Cursor have as much time as possible to adjust.
The company described the move as difficult.
It said it wants its models to remain widely available to developers, but it does not believe it can trust SpaceX to stay inside OpenAI’s terms of service.
That conclusion, OpenAI said, rests on earlier dealings with companies controlled by Elon Musk.
Large partners of this size, the company added, usually require tailored contracts meant to keep use of the models inside agreed rules and to manage safety when a product is used at scale.
OpenAI pointed to two earlier episodes.
After Musk bought Twitter, now folded into SpaceX, OpenAI said the company breached the terms of its contract with OpenAI, as well as agreements with other counterparties.
Earlier this year, Musk also acknowledged under oath that xAI — now likewise part of SpaceX — had broken OpenAI’s terms of service.
OpenAI noted that those terms resemble the rules xAI itself publishes.
The Cursor contract included a change-of-control clause that gives OpenAI a limited window to exit after ownership shifts.
SpaceX announced a deal in June to buy Anysphere, Cursor’s parent, in an all-stock transaction valued at about $60 billion and completed the acquisition this month.
OpenAI said that clause, together with rising model capability and the coming release of its Astra model, raised the bar for how carefully it must police how its systems are used.
It therefore chose to cancel at the latest date available while withholding future models from Cursor.
Cursor has long been a prominent customer for frontier labs. The product lets software teams route work through models from several providers, including OpenAI, Anthropic, Google, and first-party systems tied to Grok.
OpenAI said it has worked with Cursor for nearly four years and still holds the team and product in high regard for what they built for developers.
The people most affected, it said, are those engineers. OpenAI pledged extra support during the transition.
Cursor co-founder Michael Truell, now a SpaceX executive, said the companies were talking and that Cursor had treated OpenAI’s platform as neutral infrastructure for years.
The cutoff lands in a market already strained by rivalry among labs and by the rush to own the tools developers use every day.
Cursor grew quickly as an AI coding assistant and became one of the largest buyers of third-party models.
After the SpaceX deal, that customer relationship sits inside a company that also competes with OpenAI through xAI.
OpenAI’s decision does not immediately remove current models; it sets a November date and signals that newer systems, including Astra, will not be added.
Developers who built workflows around OpenAI models in Cursor now have a defined window to move those workflows to other products, including OpenAI’s own coding tools, or to other model providers still available inside Cursor. How SpaceX and Cursor respond commercially, and whether other labs follow or stay, will shape whether Cursor remains a multi-model platform or tilts more tightly toward in-house systems.