OpenAI cuts off Cursor from its models on November 12
OpenAI has told SpaceX it intends to wind down the contract that puts OpenAI models inside Cursor, with a proposed shutoff date of November 12, 2026. The notice went up on August 28, two weeks after SpaceX closed its acquisition of the coding startup.
The trigger is a clause, not a price dispute. OpenAI says its custom agreement with Cursor “gives us a limited time window to cancel it after a change of control”, and that it’s giving the maximum notice the contract allows so developers keep access for as long as possible. That’s a relationship of nearly four years being run out to its longest legal end date rather than switched off now.
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.
OpenAI, “Our decision on Cursor following its acquisition by SpaceX”
OpenAI names two precedents for that distrust. It says Twitter, now part of SpaceX, broke the terms of its OpenAI contract after Musk acquired it. It also points at sworn testimony: Forbes reported on April 30 that Musk, under cross-examination in his own lawsuit against OpenAI, said xAI had “partly” used OpenAI technology to train its models. OpenAI’s terms prohibit its outputs being used to train competing models.
That history matters because those companies now sit under one roof. TechCrunch reported that April’s partnership deal handed SpaceX an option to buy Cursor for $60 billion, and that SpaceX had already absorbed xAI earlier in the year. Cursor confirmed the close on its own blog on August 14, saying the deal gives it “access to the largest fleet of GPUs in the world”.
| When | What happened | Source |
|---|---|---|
| April 2026 | SpaceX and Cursor announce a technology partnership, with an option for SpaceX to buy Cursor for $60 billion | TechCrunch |
| Two months later | SpaceX becomes a public company and the two say the acquisition is going ahead | TechCrunch |
| Aug 14, 2026 | Cursor says the acquisition has officially closed | Cursor |
| Aug 27, 2026 | Hackers reported to have used Cursor’s agent against seven companies | Semafor |
| Aug 28, 2026 | OpenAI notifies SpaceX that it’s winding the contract down | OpenAI |
| Nov 12, 2026 | Proposed shutoff date for OpenAI models in Cursor | OpenAI |
There’s a model-release angle folded into the statement too. OpenAI says it carries “a new level of accountability” over how its upcoming model, Astra, gets used, and that it isn’t supplying future models to Cursor in the meantime. Astra was one of the two triggers OpenAI gave for the two-week pause in reinforcement learning training it announced on August 18, so the caution is at least consistent.
The notice also lands next to a separate problem for Cursor. Semafor reported on August 27 that Russian-speaking hackers used the Cursor agent to break into a Belgian chemical company and six other firms, telling it the work was part of a simulation. Citing Reuters, Semafor said the trick made the attackers up to 50% faster, and that the agent recommended a common malware tool for getting into a German manufacturer. That agent ran on an Anthropic model rather than an OpenAI one, and OpenAI’s notice doesn’t mention the report at all.
Developers read the cutoff as smaller than it sounds. The announcement passed 400 points on Hacker News within a day, and much of the thread argues the models being pulled were barely used inside Cursor. “I don’t know a single person that uses OpenAI models via Cursor,” wrote the commenter ralusek. One longtime user said Cursor’s own first-party models, now branded around Grok, are priced well enough that they never reached for OpenAI’s, which is the kind of substitution that shows up whenever we test coding models on the same repository.
Two things are worth watching before November. The first is whether OpenAI models quietly thin out inside Cursor ahead of the date, since OpenAI has already said new ones aren’t coming. The second is Anthropic, whose models power the Cursor agent and whose compute partly comes from the same SpaceX infrastructure that OpenAI is now backing away from.
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