OpenAI has decided to terminate its agreement to provide models for its AI-powered coding platform, Cursor, following SpaceX’s acquisition of Anysphere. This decision, coming approximately two weeks after the completion of SpaceX’s $60 billion acquisition, marks a significant change in the technology world.

OpenAI models’ current access to Cursor will not end immediately. Using the longest notice period allowed in the contract, the company has set November 12, 2026, as the proposed termination date.

Contract Termination and Reasons

OpenAI sent official notice to SpaceX on August 28, informing them that the contract providing OpenAI models to Cursor would be terminated. Under the current plan, the models will continue to be available for use through Cursor until November 12, 2026.

This date was announced as the closing date proposed by OpenAI, rather than the final date on which the contract would definitively end. The company used its maximum notice period in the contract to allow developers the longest possible transition period.

At the heart of the decision is Cursor’s transfer of control to SpaceX. The specific agreement between OpenAI and Cursor gives OpenAI the right to terminate the contract within a reasonable period of time following the change of control of the company.

SpaceX’s acquisition of Cursor triggered this decision. OpenAI chose to terminate the contract before the granted grace period expired.

OpenAI stated that it was not sufficiently confident that SpaceX would use its technology in accordance with the terms of service. The company cited previous contract and terms of use issues with Elon Musk’s companies as reasons for this decision.

In model integrations with large-scale companies, special contracts are used in addition to standard terms of use. These contracts cover both the terms of use and decisions regarding the safe use of the models on a large scale.

OpenAI’s statement also recalled that the terms of the contract with Twitter were violated after the company was acquired by Elon Musk. Twitter later became part of SpaceX following corporate restructuring.

OpenAI also stated that Musk admitted in a sworn statement in 2026 that xAI had violated OpenAI’s terms of service. xAI had also previously become part of SpaceX.

Future Plans and the Astra Model

OpenAI’s new, as yet unreleased, model Astra also plays a direct role in the termination of the contract. The company states that as the capabilities of AI models increase, the conditions under which and by whom the models are used become more critical.

Therefore, although access to existing OpenAI models will continue during the transition period, future OpenAI models will not be provided to Cursor. Astra is among the new models that will not be offered to Cursor within this scope.

The collaboration between OpenAI and Cursor has been ongoing for approximately four years. During this time, Cursor has become one of the most valuable AI coding tools integrating GPT models into its software development environment.

OpenAI also explicitly stated that the decision is not directed at the Cursor group or its work, and that it has great respect for the created work within the developer community. The group that will be directly affected by the transition is the developers within Cursor who use OpenAI models.

OpenAI has stated that it will work to support these users during the transition process and may provide support beyond its current obligations if necessary. However, technical details regarding which OpenAI models will be completely removed from Cursor after November 12, or what kind of transition system will be implemented in users’ existing projects, have not yet been shared.

Cursor’s transition to SpaceX was recently completed. In an agreement with Cursor in April 2026, SpaceX had obtained an option to purchase the company for $60 billion.

In June, this option was exercised, and an agreement was reached for a $60 billion acquisition, entirely in equity. The acquisition process was officially completed on August 14, 2026.

Cursor announced that upon joining SpaceX, it would gain access to the company’s extensive GPU infrastructure. The two companies were already working together on training artificial intelligence models before the acquisition was completed.

Cursor also announced the Grok 4.6 model as one of the first products of their collaboration following its acquisition by SpaceX. SpaceX had also acquired Elon Musk’s AI company xAI in February 2026.

With the acquisition of Cursor, SpaceX’s AI structure, xAI, Grok models, and Cursor’s development tools were brought together under one roof. Following Cursor’s acquisition by SpaceX, OpenAI’s decision ends its contractual interest in the use of its models within this new structure.

How do you think OpenAI’s decision will affect the AI ​​coding tools market?