OpenAI Cuts Cursor Off as Musk’s SpaceX Steps In

OpenAI Cuts Cursor Off as Musk’s SpaceX Steps In
OpenAI frames the break with Cursor as a necessary safeguard after the startup’s takeover by SpaceX; Cursor sees a long-standing developer partnership at risk, while Anthropic is positioning itself as a ready alternative.

SpaceX completed its $60 billion acquisition of Cursor on Aug. 14, folding the AI coding company into Elon Musk’s wider business empire. The deal put a key OpenAI customer under the ownership of one of the ChatGPT maker’s most combative rivals.

OpenAI said it then notified SpaceX that it would wind down its contract to provide models through Cursor, setting Nov. 12, 2026 as the proposed cutoff — the latest date permitted under the agreement. The company said the decision was difficult because it wants developers to have broad access to its tools, but argued it could not trust SpaceX to comply with its terms after what it described as prior contract breaches by Musk companies.

The company specifically pointed to its experience after Musk acquired Twitter, now part of SpaceX, and said Musk had acknowledged under oath that xAI had violated OpenAI’s terms. OpenAI also said it would not supply future models to Cursor, citing the greater responsibility attached to its forthcoming Astra model.

Cursor chief executive Michael Truell struck a more conciliatory note. He said OpenAI models account for roughly 5% of Cursor traffic and that the company was talking with OpenAI to resolve the dispute. Cursor, he said, had worked closely with OpenAI for years and trusted the platform to remain “neutral infrastructure for our business.”

Anthropic, already a SpaceX partner, moved quickly into the opening. Co-founder Tom Brown said it would increase compute capacity for Claude models in Cursor and was “excited for what comes next” under SpaceX. Musk amplified that message with two rocket emojis.

The rupture lands in the middle of Musk’s long-running feud with OpenAI leaders Sam Altman and Greg Brockman — a fight Musk has cast as a betrayal of OpenAI’s nonprofit origins, and OpenAI has cast as a dispute over governance and contractual obligations.

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