OpenAI Ends Contract with Cursor Following SpaceX Acquisition

OpenAI has informed SpaceX that it intends to terminate its contract providing OpenAI models to the developer platform, Cursor. The proposed shutoff date for this service is November 12, 2026. This decision was made after careful consideration of the terms and conditions under which the technology would be used by SpaceX.

The company cited concerns over compliance with their terms of service as a major factor in its decision. OpenAI has had previous experiences with Elon Musk’s companies violating contracts, including when Twitter (now part of SpaceX) broke multiple agreements alongside other partners. This incident occurred after Musk acquired Twitter and highlights the challenges that come with working with large partners.

OpenAI typically relies on custom contracts to ensure compliance with their terms of service and safety at scale. However, due to a change in control following SpaceX’s acquisition of Cursor, OpenAI has been given limited time to cancel its contract under the agreement they had in place. This decision also takes into account the upcoming release of Astra, an advanced model that requires strict adherence to OpenAI’s terms.

The company acknowledges that this move will impact developers who rely on their models within Cursor and is committed to supporting them through this transition. OpenAI has worked with Cursor for nearly four years and holds the team in high regard for their product and contributions to the developer community.

OpenAI’s decision marks a significant shift in its relationship with SpaceX, which now includes several companies that have previously violated their terms of service. The company will continue to provide support to developers during this transition period, ensuring a smooth handover of services.