OpenAI is ending Cursor's direct access to its AI models after SpaceX's $60 billion acquisition of Cursor's parent company
OpenAI notified SpaceX it will wind down the contract giving Cursor direct access to OpenAI's models, with a proposed shutoff date of November 12, 2026. OpenAI cites past contract violations by Musk-controlled companies. The move follows SpaceX's $60 billion all-stock acquisition of Cursor's parent, Anysphere, which closed August 14. Per OpenAI, Bloomberg.
OpenAI announced on August 28, 2026 that it notified SpaceX of its intent to wind down the contract providing OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026, the maximum notice period their contract allows. OpenAI says it cannot be confident SpaceX will use its technology within its terms of service, citing two past incidents: after Elon Musk acquired Twitter, now part of SpaceX, the company broke the terms of OpenAI's contract, and Musk admitted under oath earlier this year that xAI, also now part of SpaceX, had violated OpenAI's terms of service. OpenAI says it has worked with Cursor for nearly four years and is giving the maximum contractual notice so developers retain access as long as possible; developers will keep other routes to OpenAI models, including their own API keys. The decision follows SpaceX's acquisition of Cursor's parent company, Anysphere, in a $60 billion all-stock deal announced June 16, 2026 and closed August 14, 2026, described as the largest venture-backed startup acquisition on record. Sources: OpenAI, Bloomberg, CNBC.