OpenAI to Cut Cursor on November 12 Following SpaceX Acquisition

Key Takeaways

1OpenAI plans to cut Cursor's access to its models on November 12

2The shutdown follows SpaceX's acquisition of Cursor for $60 billion

3OpenAI cites past contractual violations by other companies of Elon Musk

4The precise impact for Cursor users remains uncertain

Why it matters : This break marks a new phase in the conflict between Elon Musk and OpenAI and could affect access to AI models for Cursor's customers.

OpenAI will terminate Cursor's access to its models on November 12. This break comes just after the acquisition of the startup by SpaceX for $60 billion and is part of a broader dispute between Elon Musk and OpenAI. The company cites its experience with contract violations by Musk's companies and announces that no future models, including Astra, will be provided to Cursor.

An Ongoing Dispute and a $60 Billion Acquisition

In 2024, Elon Musk initiated legal proceedings against OpenAI, its CEO Sam Altman, and other parties regarding the organization's transformation into a partially for-profit structure. In May, a federal court ruled that the lawsuit was filed after the legal deadline had expired, and Elon Musk expressed his intention to appeal. In this context, SpaceX officially acquired Cursor this month for $60 billion. The deal grants the coding startup access to SpaceX's computing power.

Cutoff on November 12 and End of Future Models, Impact Still Uncertain

OpenAI plans to cut off Cursor's access to its models on November 12. The company specifies that it will not provide future models to Cursor, including its upcoming model Astra. At this stage, it is not clear which users or which Cursor models will be affected by this shutdown. Cursor, an AI-powered code editor, already offers models from OpenAI, Anthropic, Google, and SpaceXAI. Its website notably lists OpenAI models named GPT-5.6 Luna, Sol, and Terra for paying subscribers.

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OpenAI's Reasons Relate to Past Incidents with Musk's Companies

OpenAI states that it does not trust an entity owned by Elon Musk to adhere to its terms of service. While not accusing Cursor of any wrongdoing, the company refers to precedents at other Musk companies. It cites previous contract violations by Twitter and points to an article stating that Elon Musk had cut off OpenAI's access to Twitter's data. OpenAI also notes that the SpaceX CEO admitted under oath earlier this year that xAI had violated OpenAI's rules by using OpenAI's outputs to train Grok; Elon Musk had acknowledged that it was "partly" true that xAI had distilled OpenAI's models, according to a report released in April. OpenAI further indicates that it uses "custom contracts" with major partners like SpaceX and specifies that the partnership with Cursor included a "limited time window" to terminate the agreement after the acquisition. In this context, Elon Musk acquired Twitter in 2022, and Twitter was merged with SpaceX earlier in February. The company presents this break as a new step in the dispute with Elon Musk.

Formal Announcement and Lack of Immediate Reaction

OpenAI announced that it would terminate its contract with Cursor, a company now owned by SpaceX. The company explains that this decision, which it describes as difficult, stems from its experience with contract violations by companies linked to Elon Musk. Spokespeople for OpenAI and SpaceX did not provide immediate comment. Cursor was recently acquired by SpaceX.