OpenAI Ends Contract with Cursor Following Acquisition by SpaceX

OpenAI plans to discontinue the provision of its models to Cursor and has notified SpaceX of its intention to terminate the contract. The company cites contractual precedents involving entities linked to Elon Musk and promises maximum notice to minimize service disruption for developers.

Cursor Developers Warned of a Managed Transition

OpenAI states that it has collaborated with Cursor for nearly four years. According to the company, the individuals most affected by the contract's termination are the developers using its models through Cursor. OpenAI claims it wants to support these users during the transition period and is ready to assist them. The company specifies that it is providing the maximum notice allowed by the contract to extend access to the models for as long as possible.

Reasons Cited: Terms of Use and Precedents with Musk Entities

OpenAI explains that it cannot be confident that SpaceX will use its technology in accordance with its terms of service, due to past experiences with Elon Musk's companies that have violated contracts. The company clarifies that it generally relies on customized contracts with major partners to ensure compliance with its terms and to maintain large-scale security. OpenAI asserts that after Musk's acquisition of Twitter, now part of SpaceX, the company violated the terms of their contract. It adds that earlier this year, Musk acknowledged under oath that xAI, also part of SpaceX, had breached OpenAI's terms of service. Furthermore, the customized agreement with Cursor includes a limited window for contract cancellation following a change of control.

Termination Timeline and Technical Scope: No New Models, Astra Affected

OpenAI has communicated to SpaceX its plan to terminate the contract allowing Cursor to use its models, proposing that the effective end date be November 12, 2026. The company indicates that it will maintain the contract termination until the furthest possible date while ceasing to provide access to new models for Cursor. OpenAI also notes the upcoming arrival of its future model, Astra, and claims to have an enhanced responsibility to ensure that its use remains compliant with its terms of service.