OpenAI to Cut Off AI Models for SpaceX-Owned Cursor, Escalating Feud with Musk, November 12 Shutoff Date Set

OpenAI has notified SpaceX that it will terminate its contract to provide AI models to coding platform Cursor following its acquisition by Elon Musk's company, citing concerns about past contractual violations and setting a November 12, 2026 cutoff date.

OpenAI has escalated its long-running feud with Elon Musk by cutting off AI model access to Cursor, the coding-tool company recently acquired by SpaceX. The ChatGPT maker set a November 12, 2026 deadline for the termination, citing concerns that SpaceX cannot be trusted to comply with its terms of service.

"We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts," OpenAI said in a blog post.

The Contract Termination

OpenAI invoked a "change of control" provision in its agreement with Cursor, which allows the contract to be cancelled following an acquisition. The company pointed to past breaches by Musk-owned entities, including X (formerly Twitter) and xAI, which had allegedly violated OpenAI's terms.

"Under oath earlier this year, Musk admitted that xAI, now also part of SpaceX, had violated OpenAI's terms of service," OpenAI stated.

The company also cited the upcoming release of its highly advanced "Astra" model as a reason to strictly enforce compliance with its deployment terms.

Musk's Response

Musk dismissed the decision on X, writing that he "couldn't care less.” He repeated accusations that OpenAI CEO Sam Altman and President Greg Brockman are "untrustworthy" and "stole an open source nonprofit.” The two have been embroiled in a legal battle after Musk sued OpenAI for $150 billion, alleging it abandoned its original nonprofit mission. A federal jury ruled against Musk earlier this year.

Cursor's Response and Anthropic's Move

Michael Truell, Cursor co-founder and now a SpaceX executive said the company is in discussions with OpenAI to resolve the issue. He noted that OpenAI models account for approximately 5% of Cursor user traffic. Hours after OpenAI's announcement, rival Anthropic said it would increase computing capacity to support its Claude models on Cursor.

Here is the question this move raises. OpenAI is cutting off its own models from a platform used by developers worldwide because the company behind it is owned by Elon Musk. When personal and corporate rivalries begin to affect the availability of developer tools, who ultimately pays the price the companies involved or the users caught in the middle?

FAQ:

Q: Why is OpenAI cutting off AI models to Cursor?
A: OpenAI cited concerns that SpaceX, following its acquisition of Cursor, would not use its technology within the terms of service, based on past contractual violations by Musk-owned entities.

Q: When does OpenAI's model access for Cursor end?
A: OpenAI has proposed a shutoff date of November 12, 2026, to give developers the maximum notice under the contract.

Q: How did Elon Musk respond to OpenAI's decision?
A: Musk responded on X, saying he "couldn't care less" and repeating accusations that OpenAI betrayed its nonprofit mission.

Q: What percentage of Cursor traffic uses OpenAI models?
A: OpenAI models account for approximately 5% of Cursor user traffic.

Q: Will developers using Cursor lose access to OpenAI models immediately?
A: No, developers will continue to have access until the proposed November 12, 2026 cut-off date.

Q: What is Anthropic's response to the situation?
A: Anthropic said it would increase compute capacity to support its Claude models on Cursor.