OpenAI to Terminate Model Access for Cursor Following SpaceX Acquisition

08/29/2026, 12:31 PM economy announcement SpaceX

OpenAI announced it will end developers' access to its models on Cursor, which is now owned by SpaceX, citing concerns over SpaceX's adherence to its terms of service. Cursor's CEO, Michael Truell, noted that OpenAI models account for about 5% of their user traffic and expressed a desire to resolve the situation.

OpenAI's decision stems from a history of conflict with Elon Musk, who has been critical of the company since leaving its board in 2018. Musk's ongoing legal disputes with OpenAI, including a lawsuit claiming the company violated its founding commitments, further complicate the relationship.

The termination of access is set for November 12, 2026, and OpenAI will not provide future models to Cursor. This move reflects broader industry trends, as competitors like Anthropic are also navigating partnerships and access to AI models amid a rapidly evolving market. As OpenAI prepares for a potential IPO next year, the implications of this decision could resonate throughout the AI sector

Stocks in this article

Company Price Change Change % AI
SpaceX SPCX.US 141.50 +0.63 +0.45% Hold

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