TLDR
- OpenAI is ending its partnership with AI coding tool Cursor after SpaceX acquired it for $60 billion
- OpenAI cited concerns that SpaceX would not follow its terms of service
- The contract shutoff date is set for November 12, 2026
- Cursor was built by Anysphere and is popular among developers for AI-assisted coding
- Elon Musk co-founded OpenAI in 2015 before leaving and becoming one of its loudest critics
OpenAI has announced it will end its partnership with Cursor, a popular AI coding platform, following its acquisition by SpaceX for $60 billion.
We’re ending our partnership with Cursor following its acquisition by SpaceX. Under our proposal, Cursor’s direct access to our models would end on November 12.
We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care…
— OpenAI (@OpenAI) August 29, 2026
The decision was posted on OpenAI’s website and confirmed that the company has already notified Cursor of its intent to wind down the contract. The proposed cutoff date is November 12, 2026.
OpenAI pointed to concerns about whether SpaceX would use its technology within the agreed terms of service.
“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 said in a statement.
The History Between Musk and OpenAI
Elon Musk co-founded OpenAI back in 2015 but left the organization before it became the company it is today. Since then, he has been one of its most vocal critics.
Musk also runs xAI, his own artificial intelligence company, which directly competes with OpenAI in the AI development space.
Cursor was created by a company called Anysphere. It gained a strong following among programmers by weaving AI tools into everyday coding tasks.
Bloomberg had reported back in May 2026 that SpaceX was planning to acquire Cursor shortly after its initial public offering.
What Happens to Cursor Users
OpenAI did not say how the termination would affect people currently using Cursor. It also did not specify which of its technologies would be removed from the platform after November 12.
That leaves Cursor users with some uncertainty about what the product will look like once the partnership officially ends.
The split comes as competition in AI coding tools is growing fast. Major tech companies and startups are all pushing to build tools that can write, review, and fix code.
OpenAI has been building out its own coding products as well, targeting software development as a key commercial area.
The breakup puts SpaceX in an interesting position. It now owns a widely used AI coding tool but has lost access to one of its key underlying technologies.
Whether SpaceX and Cursor will find a replacement AI provider, or build their own, has not been announced.
The November 12 deadline gives both sides roughly two and a half months to figure out next steps.
The AI coding market is expected to keep growing, and this move may push Cursor to accelerate plans to build or license new technology outside of OpenAI’s ecosystem.
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