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OpenAI to end model access to Cursor after acquisition by Elon Musk's SpaceX

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Why This Matters

OpenAI is ending access to its models on Cursor following its acquisition by SpaceX, citing concerns over SpaceX's adherence to contractual terms. This move highlights ongoing tensions between AI technology providers and corporate acquisitions, potentially impacting developers reliant on OpenAI's infrastructure. It underscores the importance of trust and compliance in AI partnerships within the tech industry.

Key Takeaways

A combination photo shows CEO of OpenAI Sam Altman (L) on April 28, 2026 and Elon Musk on April 29, 2026 during the trial in Elon Musk's lawsuit over OpenAI for-profit conversion at a federal courthouse in Oakland, California, U.S.

OpenAI announced late Friday that it is ending developers' access to its models on Cursor, following the acquisition of the AI coding startup by Elon Musk's SpaceX earlier this month.

Cursor CEO Michael Truell said, in a post on the SpaceX-owned social network X Friday night: "OpenAI models serve about 5% of Cursor user traffic, and we're speaking with the OpenAI team to resolve this. Cursor was one of the very first users of OpenAI, we've worked closely with their team for years, and we've trusted their platform to be neutral infrastructure for our business."

In their announcement, OpenAI said, "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."

Its "proposed shutoff date" for OpenAI models via Cursor is Nov. 12, 2026. OpenAI also said it would not provide future models to Cursor as it winds down the agreement.

Cursor and OpenAI did not immediately respond to CNBC's requests for comment.

SpaceX completed its $60 billion acquisition of Cursor on Aug. 14, according to financial filings. Before SpaceX went public in June, it had acquired Musk's X and xAI in February.