OpenAI To End Cursor Deal After SpaceX Acquisition

OpenAI said Aug. 28 it will wind down its agreement to provide models to Cursor, the AI coding platform acquired by Elon Musk’s SpaceX, with access scheduled to end Nov. 12. OpenAI said the decision followed the change in Cursor’s ownership and concerns about SpaceX complying with its terms of service.

The decision came 14 days after SpaceX completed its acquisition of Anysphere, Cursor’s parent company, in an all-stock transaction carrying an implied equity value of $60 billion. SpaceX’s Aug. 14 SEC filing said Anysphere shareholders were entitled to receive 389.29 million shares of SpaceX Class A common stock under the transaction.

OpenAI Cites Contract And Compliance Concerns

OpenAI said it could not be confident that SpaceX would use its technology within OpenAI’s terms of service, citing what it described as prior contract violations involving Musk’s companies. OpenAI said its agreement with Cursor contains a limited cancellation window following a change in control.

OpenAI also said it was providing the maximum notice permitted under the agreement, allowing developers to retain access to its models through Cursor until Nov. 12. The company said it would not provide upcoming models, including its planned Astra model, to Cursor under the agreement.

OpenAI said it has worked with Cursor for nearly four years and acknowledged that developers using OpenAI models through the platform would be most directly affected. The company said it was prepared to support users during the transition.

SpaceX Completed $60 Billion Cursor Acquisition

SpaceX completed the acquisition of Anysphere on Aug. 14, according to a Form 8-K filed with the U.S. Securities and Exchange Commission. The filing said the merger made Cursor a wholly owned subsidiary of SpaceX.

Cursor separately confirmed the transaction on Aug. 14, saying the company had officially become part of SpaceX. Cursor said the combination would give it access to SpaceX’s computing capacity and allow it to develop and operate more capable AI models.

The acquisition had been announced June 16. SpaceX’s SEC filing said the transaction was structured as an all-stock merger and assigned Cursor an implied equity value of $60 billion based on the agreed share consideration.

Developers Face A November Transition

Cursor’s existing integration with OpenAI will continue until the Nov. 12 termination date, giving users a defined period to transition to other model providers. OpenAI said the cancellation applies to its agreement supplying models to Cursor.

Cursor’s own announcement said its integration with SpaceX would expand its access to computing resources and highlighted Grok 4.6 as an early product of that relationship. The company said its objective remained to provide developers with more capable AI tools at lower operating costs.

Cursor therefore enters the transition with a different model-supply structure following the acquisition. OpenAI’s decision removes its models from the platform after Nov. 12, while Cursor has said its relationship with SpaceX will support further development of its own AI capabilities.

Musk-Altman Conflict Adds Wider Context

OpenAI linked its decision to its previous dealings with Musk-controlled companies. The company said Twitter, after Musk’s acquisition, breached its OpenAI contract and that Musk acknowledged under oath earlier this year that xAI had violated OpenAI’s terms of service. OpenAI said xAI is now also part of SpaceX.

The termination adds another commercial dispute to the long-running conflict between Musk and OpenAI CEO Sam Altman. Reuters reported that the two sides have also been involved in a legal battle over OpenAI’s corporate structure and mission, while OpenAI’s latest decision directly affects a company that had been an early customer of its models.

For Cursor users, however, the immediate issue is contractual rather than legal: OpenAI has set Nov. 12 as the proposed shutoff date while Cursor remains under SpaceX ownership. The transition also gives Cursor an opportunity to build further on the computing and AI infrastructure SpaceX says it is developing for the company.