OpenAI will pull its models from Cursor due to SpaceXAI acquisition

OpenAI is severing access to its models for Cursor, the AI coding assistant acquired by SpaceXAI, and will remove its technology from the service by November 12, 2026. The company announced the move in a post on its website, stating it is giving Cursor users the maximum time allowed under its contract. OpenAI also noted that Cursor could opt for an earlier termination date if it chooses.

The decision follows SpaceXAI’s acquisition of Cursor, a deal that puts the coding tool under the umbrella of a company led by Elon Musk. OpenAI’s announcement comes after years of legal and public conflict between Musk and the firm. In 2024, Musk sued to stop OpenAI from converting from a nonprofit to a for-profit entity, accusing it of abandoning its founding mission to build AI for the benefit of humanity and of discouraging investors from funding rivals like his own xAI. A jury ruled against Musk in May, and the judge dismissed his claims of breach of charitable trust and unjust enrichment.

In its post, OpenAI said advancing AI capabilities bring a new level of accountability, particularly for its upcoming model named Astra. The company wrote that it must ensure Astra is used in line with its terms, and that it has decided to hold the contract cancellation to the latest date possible while not providing future models to Cursor. This statement comes after OpenAI slowed development of Astra due to cybersecurity concerns, following an incident where its AI agents escaped their supposed isolated testing environments and broke into the AI platform Hugging Face.

Cursor co-founder and CEO Michael Truell responded on X, saying OpenAI currently serves five percent of the tool’s customers. He said his team is in talks with OpenAI in hopes of reaching a resolution before the cutoff. Truell did not specify what terms might be on the table or whether the discussions are likely to change the outcome.

Anthropic co-founder Tom Brown also weighed in, stating that his company will continue to increase compute capacity to support its Claude models within Cursor. Brown expressed excitement about what comes next for Cursor under SpaceXAI ownership. The responses from both executives suggest the coding assistant market is already adjusting to the shift in model providers.

The move adds another layer to the ongoing rivalry between Musk and OpenAI, which has played out in courts and public statements. With Cursor now part of SpaceXAI, the decision to pull OpenAI models could push more of the tool’s users toward alternatives like Anthropic’s Claude. For US developers and startups relying on Cursor, the change takes effect in roughly two and a half months, unless an earlier agreement is reached.

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