OpenAI to stop supplying models to Cursor after SpaceX acquisition

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August 29, 2026, 10:15 AM

• •OpenAI said Cursor will lose access to its models on 12 November.
• •The company cited concerns that SpaceX would not honor OpenAI’s terms of service.
• •OpenAI said SpaceX’s acquisition of Twitter and xAI’s conduct were relevant to its decision.
• •Cursor and SpaceXAI launched Grok 4.5 in July, reducing Cursor’s dependence on OpenAI models.
• •The article says EU switching rules help customers leave providers, but may not cover a provider deciding to cut off a customer.

OpenAI said it will end Cursor’s access to its models on 12 November after SpaceX acquired the company in a $60 billion all-stock deal. The company said it does not trust SpaceX to comply with its terms of service, citing past contract violations involving Elon Musk’s companies and saying Astra will not be supplied at all. Cursor is less exposed than it would have been earlier because it already launched Grok 4.5 with SpaceXAI in July across all plans. The article argues that EU cloud-switching rules may not clearly cover model APIs and do not protect customers when a supplier, rather than the customer, decides to terminate service.

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