OpenAI to cut off Cursor AI models following SpaceX acquisition

OpenAI has announced it will terminate access to its AI models for the coding tool Cursor, effective November 12, 2026. The decision follows SpaceX’s $60 billion acquisition of Anysphere, the startup behind Cursor.

OpenAI stated the move is due to a lack of confidence regarding contract compliance, noting, “We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts.” This development marks a significant escalation in the long-standing dispute between OpenAI CEO Sam Altman and Elon Musk.

Musk dismissed the announcement, accusing Altman and OpenAI President Greg Brockman of being “untrustworthy.” Cursor co-founder Michael Truell noted that OpenAI models currently account for approximately 5% of Cursor’s user traffic and stated that the company is in discussions with OpenAI to resolve the issue.