- The contract will end on November 12, 2026, with maximum notice given to developers
- Concerns about compliance arose from Elon Musk's companies, including Twitter and xAI
- Future OpenAI models will not be available on Cursor due to contract and safety reasons
OpenAI is ending its partnership with Cursor after SpaceX acquired the coding platform, saying it cannot be confident that its technology will continue to be used within its terms of service. The company has notified SpaceX that it intends to wind down its contract to provide OpenAI models to Cursor, with a proposed shutoff date of Nov 12, 2026.
OpenAI said it is providing the maximum notice allowed under its agreement so developers using Cursor have as much time as possible to retain access to its models before the contract ends.
Why OpenAI Is Ending The Cursor Deal
OpenAI said the decision was difficult because it wants its models to remain broadly available to developers. However, it said its experience with Elon Musk's companies raised concerns about compliance with contractual terms.
The company pointed to the earlier acquisition of Twitter, now part of SpaceX, saying Musk's company had broken the terms of its contract with OpenAI.
OpenAI also referred to Musk's testimony earlier this year, in which he admitted that xAI had violated OpenAI's terms of service.
For large partners, OpenAI said it generally uses customised contracts to establish safeguards around how its technology is integrated and used. These agreements are also intended to support compliance with its terms of service and safety requirements as AI systems are deployed at scale.
Future OpenAI Models Won't Be Available On Cursor
OpenAI said its custom agreement with Cursor allows it to cancel the contract within a limited period following a change of control.
The company said the rapid advancement of AI capabilities has also increased its responsibility to ensure that its models are used in line with its terms. It cited Astra, its upcoming model for critical cyber capabilities, as an example of why those safeguards have become more important.
OpenAI therefore decided to keep the contract active until the latest possible cancellation date while withholding future models from Cursor.
The companies have worked together for nearly four years. OpenAI said it has "enormous respect" for Cursor's team, product, and contribution to the developer community.
The company acknowledged that developers relying on OpenAI models through Cursor will be directly affected by the decision. It said it is prepared to provide additional support to developers and Cursor during the transition.
Also Read: 'Not Much Time to Act': Sam Altman Calls For Urgent Global Response To AI Cyber Threats
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