OpenAI ends Cursor partnership after SpaceX acquisition

OpenAI will end its model-supply agreement with Cursor after the coding platform was acquired by SpaceX, the company announced on Friday. The contract is scheduled to be terminated on November 12, 2026.

The AI company, led by Sam Altman, said it has worked with Cursor for almost four years and retains enormous respect for its team, product and role in the developer community.

OpenAI said the decision was made over concerns that SpaceX may violate its terms of service, citing previous contract violations involving Elon Musk’s companies. The company said partnerships with large organizations typically require customized agreements designed to enforce its terms and ensure that integrations operate safely at scale.

OpenAI said agreements with major partners generally include customized provisions for contractual compliance and safe deployment at scale, and cited the company formerly known as Twitter as an example of a Musk-controlled business that breached its agreement with OpenAI. It also referenced Musk’s admission under oath that xAI violated OpenAI’s terms of service. xAI is now part of SpaceX.

Cursor’s agreement with OpenAI gives the company a limited period to terminate the contract following a change in control. OpenAI said the accelerating capabilities of AI and the planned release of Astra have increased its responsibility to ensure its models are used consistently with its policies. It therefore plans to exercise its cancellation rights at the latest permissible date, allowing current access to continue while preventing Cursor from receiving future models.

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