OpenAI to End Contract After SpaceX Acquires Cursor; Model Access Cuts Off on Nov 12

OpenAI has decided to terminate its agreement to provide OpenAI models to Cursor following SpaceX's acquisition of Cursor. The termination date is November 12, 2026, providing the maximum notice period allowed under the contract so developers can use the models for as long as possible.

Trust Issues with SpaceX

OpenAI made this decision because it cannot be confident that SpaceX will comply with its Terms of Service. A key background factor is the precedent of Elon Musk's companies violating contracts. After acquiring Twitter, Musk violated OpenAI's contract, and earlier this year, under oath, xAI admitted to distilling data in violation of OpenAI's terms. xAI is also currently part of SpaceX.

Astra Model Security and Contract Terms

When collaborating with large-scale partners, OpenAI relies on custom contracts to ensure compliance with Terms of Service and large-scale safety. The existing contract with Cursor included a limited period during which it could be terminated upon a change of control. Additionally, OpenAI feels a new level of responsibility to ensure its next-generation model, Astra, is used in accordance with its terms, and has therefore decided to maintain the contract termination date as late as possible while not providing future models to Cursor.

Developer Support Plan

OpenAI expressed respect for the Cursor team and the developer community, acknowledging that the developers relying on OpenAI models within Cursor are the most affected by this decision. OpenAI stated it will do its best to support developers' experience during this transition.