OpenAI cutting off Cursor AI model access after SpaceX deal
Mon, August 31, 2026 at 2:44 PM GMT+3 2 min read
OpenAI announced it is ending developer access to its AI models via Cursor, the AI coding tool now owned by SpaceX, setting a termination date of Nov. 12, 2026 for existing access and saying it will not provide future models to the service.
OpenAI explained its decision by saying it has no assurance that SpaceX will abide by its terms of service, pointing to its "experience with Elon Musk's companies violating contracts." The company also highlighted Musk's courtroom admission, during cross-examination in the lawsuit, that xAI had trained its models on OpenAI's output — a technique known as distillation. OpenAI added that it faces heightened responsibility to guarantee its forthcoming model, Astra, operates in accordance with its policies.
In an X post, Cursor co-founder and CEO Michael Truell disclosed that OpenAI models account for roughly 5% of the platform's user traffic, adding that his team is in talks with OpenAI to find a resolution. "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," Truell wrote, according to CNBC.
Musk responded on X, dismissing OpenAI CEO Sam Altman and President Greg Brockman and repeating his claim that they "stole an open source nonprofit," according to CNBC.
Anthropic co-founder Tom Brown wrote on X that his company would "continue to increase compute to support Claude models in Cursor" and said it was eager to see what lies ahead for Cursor under SpaceX's ownership. The post sparked backlash on X, with Replit CEO Amjad Masad calling out Anthropic's own record of cutting off Windsurf from its Claude models the previous June.
SpaceX completed its $60 billion all-stock acquisition of Anysphere, Inc., Cursor's parent company, on Aug. 14, according to financial filings. The deal came after Cursor had rebuffed two separate acquisition approaches from OpenAI, with the startup's leadership having prioritized remaining independent.
The relationship between SpaceX and Cursor had been deepening before the acquisition closed. SpaceXAI and Cursor jointly trained Grok 4.5, a coding-focused AI model launched in July, using tens of thousands of Nvidia GB300 GPUs. SpaceX had earlier folded xAI, Musk's AI venture, into its operations.
The dispute is part of a broader conflict between Musk and OpenAI. Musk co-founded the company as a nonprofit in 2015 and left its board in 2018. He sued OpenAI in 2024 over its transition to a for-profit structure, but a jury ruled against him this past May, according to Engadget. Musk has vowed to appeal.
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