OpenAI will pull its models from Cursor due to SpaceXAI acquisition

image via Engadget

August 29, 2026, 2:58 PM

• •OpenAI said it will end Cursor's access to its models on November 12, 2026, after Cursor's acquisition by SpaceXAI.
• •The company said it does not trust SpaceX to comply with OpenAI's terms of service, citing its experience with Elon Musk's companies and alleged contract violations.
• •The article says Musk admitted in court that xAI used OpenAI outputs to train its own models through distillation.
• •Cursor CEO Michael Truell said OpenAI serves about five percent of Cursor's customers and that the company is seeking a resolution.
• •Anthropic's Tom Brown said Anthropic plans to expand compute support for Claude models in Cursor.

OpenAI said it will remove Cursor's access to its models on November 12, 2026, following the coding assistant's acquisition by SpaceXAI. The company said it is not confident SpaceX will follow its terms of service, citing prior disputes and alleged contract violations involving Elon Musk's companies. Engadget reports that OpenAI also pointed to Musk's courtroom admission that xAI used OpenAI outputs for model distillation. Cursor said OpenAI powers only a small share of its users, while Anthropic said it will expand support for Claude inside the tool.

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