OpenAI has informed SpaceX of its intention to terminate the contract providing its models to Cursor, with a proposed cutoff date of November 12, 2026. The decision was made to ensure developers can continue using OpenAI models through Cursor for as long as possible under the terms of the agreement. OpenAI emphasized that this choice was difficult, as it values the broad availability of its models for developers. The company stated it cannot be confident that SpaceX will use its technology in accordance with its terms of service, based on its experience with Elon Musk's companies violating contracts.
OpenAI typically relies on custom contracts to ensure compliance with its terms of service when working with large partners. However, after Musk acquired Twitter, now part of SpaceX, the company broke the terms of the contract, along with many others. Earlier this year, Musk admitted under oath that xAI, now also part of SpaceX, had violated OpenAI’s terms of service. OpenAI’s custom agreement with Cursor includes a limited time window to cancel the contract following a change of control. Given the advancement of AI capabilities and the need for accountability, OpenAI decided to hold the cancellation to the latest possible date without providing future models to Cursor.
OpenAI has collaborated with Cursor for nearly four years and holds great respect for the company’s team, product, and contributions to the developer community. The company acknowledged that developers relying on OpenAI models in Cursor will be most affected by this decision. OpenAI expressed its commitment to supporting these developers during the transition. Source: openai
