OpenAI to Terminate Model Access for Cursor Following SpaceX Acquisition

OpenAI announced on August 28, 2026, that it has notified SpaceX of its intent to wind down model access for the AI code editor Cursor, setting a proposed contract shutoff date of November 12, 2026. The decision follows SpaceX’s acquisition of Cursor and triggers a change-of-control clause in OpenAI’s agreement, with OpenAI citing prior terms of service violations by Elon Musk-affiliated entities.

The company stated that it is providing the maximum notice period permitted under its contract with Cursor to allow developers time to adjust. Cursor has integrated OpenAI models for nearly four years under a custom enterprise agreement.

Change-of-Control Terms and Termination Timeline

OpenAI’s custom agreement with Cursor included a limited post-acquisition window allowing OpenAI to cancel the contract in the event of a change of control. Following the purchase of Cursor by SpaceX, OpenAI opted to exercise that provision.

Under the current timeline, developers using Cursor will retain access to supported OpenAI models until the proposed shutoff on November 12, 2026. OpenAI noted that it chose to set the cancellation date as late as contractually allowed to minimize immediate disruptions for existing users.

The company stated that it plans to assist affected developers through the transition period leading up to the November deadline.

Prior Contract Disputes Cited in the Decision

In its announcement, OpenAI stated that it could not be confident SpaceX would adhere to its terms of service. The company pointed to previous interactions with other businesses owned by Elon Musk that are now under the SpaceX umbrella.

Specifically, OpenAI noted the following instances:

• Twitter (now part of SpaceX): OpenAI stated that the social media platform broke the terms of its contract following Musk’s acquisition.
• xAI (now part of SpaceX): OpenAI cited testimony from Musk earlier in 2026, in which he admitted under oath that xAI had violated OpenAI’s terms of service.

OpenAI stated that it relies on custom contracts with large partners to enforce its usage policies and safety requirements at scale.

Exclusion of Upcoming Astra Model

As part of the wind-down, OpenAI confirmed that it will not provide its upcoming model, named Astra, to Cursor.

The company stated that increasing model capabilities require stricter accountability to ensure that upcoming systems are deployed in compliance with its standard terms. While existing integrations will remain operational until November 12, Cursor will not receive access to Astra or any subsequent model releases.