OpenAI to End Cursor Model Access After SpaceX Acquisition
OpenAI plans to stop supplying its artificial intelligence models through Cursor after SpaceX acquired the coding startup. Consequently, the proposed cutoff will take effect on Nov. 12, 2026.
Moreover, OpenAI will not provide future models to Cursor while it winds down the agreement. The company cited concerns about whether SpaceX would comply with its service terms.
However, discussions between OpenAI and Cursor remain ongoing. OpenAI models currently account for about 5% of Cursor’s user traffic.
Meanwhile, neither company immediately provided further comment.
SpaceX completed its $60 billion acquisition of Cursor on Aug. 14, according to financial filings. Earlier, SpaceX acquired X and xAI before completing its public listing in June.
Musk’s Long-Running Conflict With OpenAI
The decision adds another chapter to Elon Musk’s bitter dispute with OpenAI leaders Sam Altman and Greg Brockman. Musk co-founded the AI organization as a nonprofit research laboratory in 2015 and helped finance its early operations.
However, Musk left its board in 2018 following several disagreements about the organization’s direction. He had also recruited talent from the company and stopped providing previously promised donations.
Afterward, OpenAI introduced ChatGPT and formed major partnerships with technology companies, including Microsoft. Furthermore, it adopted a for-profit structure under a nonprofit parent and attracted substantial investment.
Musk later sued OpenAI, Altman and Brockman in 2024. He argued that the restructuring violated the organization’s original commitments.
However, OpenAI rejected his accusations. Although Musk lost the lawsuit earlier in 2026, he plans to appeal.
Meanwhile, the rivalry between Musk and OpenAI’s leadership continues publicly. The Cursor decision has further intensified tensions between both sides.
Competition Intensifies in AI Coding
Meanwhile, competition in the AI-assisted coding market continues to grow. Developers increasingly use these “vibe coding” platforms to build and modify software through natural-language instructions.
OpenAI could pursue a public offering next year. Similarly, rival Anthropic has held preliminary discussions with bankers about a possible IPO this year.
Reports suggest Anthropic could seek a valuation as high as $2 trillion. However, its plans remain preliminary.
OpenAI is not the first AI developer to restrict a coding platform’s model access. In June 2025, Anthropic blocked Windsurf from directly accessing its Claude models.
Nevertheless, Anthropic now partners with SpaceX and rents computing capacity from Musk’s company. Additionally, Anthropic plans to increase computing support for Claude models inside Cursor.
However, some technology executives criticized Anthropic’s response. They pointed to the company’s previous decision to restrict Windsurf’s access to Claude models.
