OpenAI is terminating its agreement with Cursor regarding the use of its AI models. This follows SpaceX’s acquisition of Cursor. OpenAI states it lacks sufficient confidence that Elon Musk’s company will adhere to its terms of use.
The contract’s scheduled end date is November 12, 2026. Until then, developers can continue to use OpenAI’s models via Cursor. However, new models released by OpenAI in the meantime will no longer be available through the platform.
OpenAI is thus invoking a provision in its agreement with Cursor that allows it to terminate the contract following a change in ownership. The company says it is choosing the latest possible end date permitted under that provision.
Mistrust toward Musk’s companies
The decision is not so much about Cursor itself as it is about the new owner. OpenAI cites previous conflicts with companies owned by Elon Musk. For example, it claims that Twitter, now part of SpaceX, breached the terms of a contract with OpenAI following its acquisition by Musk.
OpenAI also cites xAI. Earlier this year, Musk acknowledged under oath that xAI had used OpenAI data to train models in a manner that violated OpenAI’s terms of service. xAI is now also part of SpaceX.
In doing so, OpenAI explicitly presents the termination of the Cursor contract as a precautionary measure. With major partners, the company typically makes additional contractual agreements regarding the use of its models and the security requirements that an integration must meet. OpenAI says it does not have sufficient confidence that SpaceX will comply with such agreements.
Astra also plays a role
The decision is given added weight by the arrival of Astra, a new OpenAI model. According to the company, as the capabilities of new models increase, so do the risks when they are used outside the agreed-upon terms. OpenAI therefore does not want to make Astra available via Cursor as long as the platform remains under SpaceX’s control.
For Cursor, the decision means that a nearly four-year partnership with OpenAI is coming to an end. The consequences will be most noticeable for developers who use OpenAI models within the development environment. They have until November 12 to switch to other models or find another way to use OpenAI technology.
It is noteworthy that OpenAI is sparing Cursor itself. The company expresses its appreciation for the team and the product. The split is entirely attributed to the change in ownership and OpenAI’s previous experiences with other companies owned by Musk.