OpenAI to stop supplying models to Cursor after SpaceX acquisition

OpenAI is ending its contract to supply models to Cursor following SpaceX’s $60B acquisition, with access shutting off on 12 November and its forthcoming Astra model withheld. Cursor and SpaceXAI shipped Grok 4.5 together in July, which is available in Cursor on every plan.

OpenAI is ending its contract to supply models to Cursor. The shutoff date is 12 November, the company said on Saturday.

The reason given is unusually direct. OpenAI said it cannot be confident SpaceX will use its technology within its terms of service, “based on our experience with Elon Musk’s companies violating contracts“.

Bloomberg reported it first. OpenAI published the same notice on X and on its own website.

Two grounds are named, both about earlier conduct. SpaceX’s acquisition of Twitter breached OpenAI’s terms, the company said, and xAI violated them in a way Musk admitted under oath this year.

The buyer completed its purchase this month. SpaceX closed the $60B all-stock acquisition of Cursor after agreeing it in June.

OpenAI says it gave the maximum notice its contract allows, about two and a half months. Astra, its next model, will not be supplied to Cursor at all. It added that it is ready to go above and beyond to support developers moving off.

The leverage in that is thinner than it looks. Cursor and SpaceXAI shipped Grok 4.5 together in July, a model Musk called Opus-class, available in Cursor on every plan.

So OpenAI is removing a supplier from a company that now owns a frontier lab. The gesture costs Cursor less than it would have in June, when the deal had only been agreed.

What it costs developers is real. Europe wrote rules for exactly this dependency, and since September 2025 cloud customers have been able to switch on two months’ notice and port their assets within 30 days. From January 2027 the provider cannot charge for any of it.

Whether those rules reach this is unresolved. The definition sweeps in as-a-service models broadly, and nobody has ruled on whether a model API counts as one.

There is a further gap in them. The switching rules protect a customer who wants to leave a provider, not a customer whose provider decides to leave. Nobody drafted for a supplier walking out.

Which is where European developers on Cursor now sit. Seventy-five days of notice, granted by a contract they never saw, with nothing statutory underneath it.