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OpenAI to cut off AI model access for Cursor after SpaceX acquisition, citing contract concerns.

Market News
29 Aug 2026
CNBC
View Source
Bearish
pluang ai news

OpenAI announced it will end access to its AI models for Cursor, following SpaceX's $60 billion acquisition of the AI coding startup. OpenAI cited concerns over SpaceX's compliance with contract terms based on past disputes with Elon Musk's companies. Cursor CEO Michael Truell said OpenAI models account for about 5% of their user traffic and discussions are ongoing. The cutoff is planned for November 12, 2026, and OpenAI will not provide future models to Cursor as it winds down the agreement. This move reflects ongoing tensions between OpenAI leadership and Elon Musk, who has been a vocal critic and legal adversary of OpenAI's restructuring and direction.

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