OpenAI announced it is ending its partnership with Cursor, the popular AI-coding tool, after SpaceX completed its acquisition of the startup in August 2026. Cursor's direct access to OpenAI's models is set to end on November 12, and future models, including the unreleased Astra, will not be made available to the company.
OpenAI said it cannot be confident SpaceX will honor its usage terms, citing past disputes after Elon Musk's companies gained control of other OpenAI partners. Cursor and SpaceX first struck a strategic partnership in April 2026 around SpaceX's Colossus computing infrastructure, with an option for SpaceX to acquire Cursor for $60 billion or pay a $10 billion break-up fee; the acquisition closed this month.
Cursor CEO Michael Truell downplayed the impact, noting OpenAI's models handle only about 5% of Cursor's traffic. The move underscores growing rivalry between OpenAI and Musk-controlled companies as AI labs increasingly restrict access to their models based on ownership and competitive ties.