OpenAI to end contract with Cursor after SpaceX acquisition
OpenAI will terminate its contract to supply models to Cursor following the AI code editor's acquisition by SpaceX. The proposed shutoff date for services is November 12, 2026.
AI firm OpenAI has announced its intention to wind down its contract providing models to the AI code editor Cursor, following the latter's acquisition by SpaceX. OpenAI notified SpaceX on August 28 of its plan to terminate the agreement, proposing November 12, 2026, as the service shutoff date, which represents the maximum notice period allowed under their contract.
Cursor is an AI-powered code editor designed to assist developers in writing and modifying software using natural language prompts and AI-generated code. SpaceX announced its $60 billion acquisition of Cursor in June, with the deal officially completed in August.
OpenAI cited concerns that it cannot ensure SpaceX will adhere to its terms of service, referencing previous alleged contract violations by Musk-affiliated companies, including X (formerly Twitter) and xAI.
The termination of OpenAI's models could impact Cursor's competitive edge. Cursor distinguishes itself by being model-agnostic, allowing users to choose between various AI providers. While Cursor can continue to utilize models from other companies, the loss of OpenAI's offerings may limit the selection that currently sets it apart from rival coding tools.
Elon Musk, a co-founder of OpenAI who departed in 2018, launched the competing AI venture xAI in 2023. He has since been involved in legal disputes with OpenAI concerning the organization's founding principles and agreements.