ChainCatcher reports that OpenAI has terminated its nearly four-year partnership with Cursor. From this point on, new models from OpenAI will not be integrated into Cursor, and the existing model supply plan is due to end on November 12, 2026. The decision comes roughly two weeks after SpaceX closed its $60 billion acquisition of Cursor. The contract between OpenAI and Cursor included a provision that allowed OpenAI to stop the partnership after Cursor was acquired. OpenAI says the termination is tied to trust concerns regarding companies affiliated with Elon Musk. Specifically, OpenAI pointed to contract violations by Twitter following its acquisition and xAI's previous misuse of OpenAI models. Accordingly, OpenAI believes it is risky to keep providing new models to Cursor now that the company is controlled by SpaceX. The news was published by ChainCatcher on August 29, 2026. The cutoff for existing models was set to November 12, 2026, marking an end to the direct supply arrangement. OpenAI had the contractual right to walk away once the acquisition closed. Acquisition-related trust issues were central to the decision.
OpenAI has ended its nearly four-year partnership with Cursor. From this point on, new OpenAI models will no longer be integrated into Cursor, and the direct supply of existing models is scheduled to halt on November 12, 2026.
The termination comes roughly two weeks after SpaceX closed its $60 billion acquisition of Cursor. The contract between the two companies allowed OpenAI to exit the partnership once Cursor was acquired.
OpenAI tied the decision to trust issues with Elon Musk's companies. It pointed to Twitter's post-acquisition violations of its agreement with OpenAI and xAI's earlier unauthorized use of OpenAI models. In light of these events, OpenAI said continuing to provide new models to Cursor, now controlled by SpaceX, poses risks.
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