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OpenAI will end model access for SpaceX owned Cursor by Nov 12, citing Musk’s firms violating contracts.
OpenAI stated it can no longer rely on SpaceX to follow its usage policies, pointing to a history of contract violations by Musk affiliated businesses. The company invoked a change of control provision in Cursor’s agreement, allowing termination with limited advance notice.
Under the wind down plan, Cursor will keep access to currently deployed OpenAI models but will not receive any future releases. OpenAI emphasized that partnerships of this scale usually require tailored contracts to ensure safety and policy adherence.
Musk responded on X with characteristic defiance, saying he “couldn’t care less” and renewing claims that Altman and co-founder Greg Brockman betrayed OpenAI’s original mission. His remarks mirror arguments from his earlier lawsuit against the company, which a jury dismissed earlier this year on timing grounds.
Cursor co-founder Michael Truell, now at SpaceX, said the team is in discussions with OpenAI to address the situation. Meanwhile, rival Anthropic plans to expand compute capacity for its Claude models within Cursor, potentially shifting the balance among AI coding platforms.
Developers can continue using existing OpenAI powered features in Cursor until the November deadline, but should prepare for a transition to other providers. The move is expected to push Cursor toward greater reliance on alternatives like Anthropic’s Claude and possibly Musk’s xAI/Grok stack, intensifying competition in AI assisted coding tools.
