OpenAI plans to end model supply contract with Cursor
OpenAI said on August 28, 2026 that it has notified SpaceX of its intention to wind down the contract under which OpenAI models are supplied to Cursor. The proposed shutoff date is November 12, 2026. OpenAI said it is giving the maximum notice permitted by the agreement to preserve developers’ access to its models through Cursor for as long as the contract allows.
The decision follows SpaceX’s acquisition of Cursor. OpenAI said its contract includes a limited window in which it can be cancelled after a change of control, and that it will use the latest available date while withholding future models from Cursor.
Why OpenAI is ending the arrangement
OpenAI said it could not be confident that SpaceX would use its technology within the company’s terms of service. It linked that concern to its experience with Elon Musk’s companies, stating that Twitter, now part of SpaceX, broke the terms of its contract with OpenAI after Musk acquired the platform.
The company also said that Musk admitted under oath earlier in 2026 that xAI, which is now also part of SpaceX, had violated OpenAI’s terms of service. OpenAI noted that those terms are similar to xAI’s own terms.
For large partners such as SpaceX, OpenAI said it normally relies on custom contracts to establish compliance with its terms and to ensure an integration can operate safely at scale. The company said advancing AI capabilities create a new level of accountability around the use of its forthcoming Astra model.
What the change means for Cursor users
The acquisition is documented in SpaceX completed its acquisition of Cursor and gives OpenAI a contractual basis to assess the Cursor arrangement after the ownership change. Its notice does not say that Cursor will immediately lose access to OpenAI models; instead, it sets out the November 12 proposal and a planned wind-down.
OpenAI said it has worked with Cursor for nearly four years and expressed respect for the company’s team, product and contribution to the developer community. It acknowledged that developers relying on OpenAI models in Cursor will be the people most affected by the transition and said it is ready to provide support beyond normal expectations.
Business implication
Teams that depend on OpenAI models inside Cursor should identify affected development workflows, confirm the timing of any service changes with their suppliers, and plan model-access alternatives before the proposed November 12, 2026 cutoff.