OpenAI is preparing to end its supply of artificial intelligence models to Cursor, the popular AI-powered coding platform, after Elon Musk’s SpaceX acquired Cursor’s parent company, Anysphere, in a $60 billion all-stock deal.OpenAI said it intends to terminate its agreement and suggested November 12 2026 asCursor could lose direct access to its models. The development is another chapter in the continuing feud between OpenAI and Musk who has frequently spoken critically about the company and those within it, while OpenAi insists the action will be based on concerns over contract violations rather thanCursor.About The AuthorHey there, i am a technology enthusiast with a deep passion for gadgets, consumer electronics, emerging technologies, and the fast-paced world of digital innovation. Constantly exploring the latest tech trends, product launches, and industry developments, I enjoy translating complex technological advancements into engaging and accessible stories for readers. My interests span smartphones, wearables, artificial intelligence, smart devices, and the broader technology ecosystem. As I begin my journey as a Tech Journalist at Gadgets Now, I am excited to contribute to a platform that informs millions of readers, combining my passion for technology with storytelling to deliver insightful, accurate, and timely tech coverage.Cursor co-founder Michael Truell said discussions with OpenAI are continuing, while OpenAI has said it wants to provide developers with maximum notice before the change takes effect.OpenAI’s decision follows SpaceX’s $60 billion acquisitionOpenAI’s move against Cursor came shortly after SpaceX completed its acquisition of Anysphere, the company behind the AI coding tool. The deal, valued at $60 billion in stock, closed on August 14, bringing Cursor under Musk’s corporate umbrella. According to OpenAI, the change in ownership prompted it to reconsider its existing arrangement with Cursor.The company said it provided notice to SpaceX that it planned to close the contract under which OpenAI models are provided to Cursor, and did so with the greatest possible advance notice to SpaceX as per the agreement. The targeted closure date is Nov. 12. Reuters on Monday reported that the news was due to its acquisition and will exacerbate an ongoing conflict between Musk and OpenAI chief executive Sam Altman.Why OpenAI ended its Cursor relationshipOpenAI has framed the decision primarily as a trust and contractual-compliance issue. In its statement, the company said it could not be confident that SpaceX would use its technology within its terms of service, citing what it described as previous contract violations involving Musk-owned companies.OpenAI pointed to its experience following Musk’s acquisition of Twitter, now X, and also referred to Musk’s xAI acknowledging that it had distilled OpenAI data to train its own models. Reuters reported that OpenAI’s decision was therefore based on concerns about how its technology could be used after Cursor came under SpaceX ownership. OpenAI stressed that Cursor itself was not accused of violating its agreement.Musk responds as Altman feud intensifiesMusk slammed the move in an X posting, directly mocking Altman and OpenAI President Greg Brockman. The billionaire’s comments were indicative of the bitterness between himself and the company that he helped start years earlier.More articles by AuthorTrending StoriesIn addition, the billionaires continue to throw shots at one another. The duo is currently warring in court, as the former SpaceX CEO continues to chase down a massive lawsuit he has filed against his former company earlier in 2026.Reuters reported that the latest Cursor decision adds another front to that rivalry, turning an existing corporate disagreement into a direct question over access to AI models. For Cursor, the fallout comes despite the company not being accused of wrongdoing.Cursor says OpenAI models account for a small shareThe immediate impact on Cursor users could be limited because the platform relies on models from several AI companies. Cursor co-founder Michael Truell said OpenAI models account for roughly 5 per cent of the platform’s user traffic. Truell expressed disappointment over OpenAI’s announcement but said the companies were still in discussions to resolve the situation.He also described Cursor as one of OpenAI’s early users and said the company had relied on OpenAI as a form of neutral infrastructure. Cursor has increasingly diversified its model offerings, reducing its dependence on any single provider.Reuters reported that Anthropic, another major AI company, plans to expand its support for Cursor, potentially helping the platform replace some of the lost OpenAI capacity.The acquisition reshapes Cursor’s AI model strategySpaceX’s acquisition changes Cursor’s position in the increasingly competitive AI market. Before the deal, Cursor operated as an independent company and could integrate models from competing providers, including OpenAI and Anthropic. After becoming part of Musk’s business empire, however, its relationship with OpenAI became more complicated.SpaceX has its own interests in artificial intelligence, while Musk also controls xAI, a direct competitor in the AI-model market. Cursor had already expanded beyond OpenAI, including support for models from other providers. Reuters reported that Anthropic intends to increase its support for the coding platform following OpenAI’s decision.The episode highlights how acquisitions can affect technology partnerships even when the acquired company itself has not breached an agreement.A growing fault line in the AI industryThe dispute illustrates a broader shift in the AI industry, where model providers, application developers and infrastructure companies are increasingly becoming competitors as well as partners. Cursor is both a major consumer of AI models and a coding platform that competes for users in a market increasingly targeted by companies such as OpenAI and Anthropic.SpaceX’s acquisition further blurred those boundaries by placing Cursor within Musk’s expanding technology ecosystem. OpenAI’s decision shows that control of an AI company can affect access to models even when commercial relationships were previously well established.The move also underscores the importance of contractual change-of-control provisions as AI companies increasingly acquire startups that depend on technology supplied by potential competitors.Cursor faces a transition before November deadlineFor now, Cursor users are expected to retain access to OpenAI models while the companies work through the transition. OpenAI has proposed November 12 as the final date for access, giving developers time to adjust their workflows and move to alternative models. OpenAI said it was providing the maximum notice required under its contract because it wanted developers to have as much time as possible.Truell’s comments indicate that discussions between Cursor and OpenAI remain ongoing, leaving open the possibility of an agreement before the proposed deadline. Still, the announcement signals a significant change in the relationship between the two companies.What began as a partnership between an AI model provider and a fast-growing coding startup has now become another casualty of the escalating rivalry surrounding Musk and OpenAI. FAQsWhy is OpenAI ending its partnership with Cursor?OpenAI is ending its partnership with Cursor due to concerns regarding contractual compliance following SpaceX's acquisition of Cursor's parent company, Anysphere. OpenAI cited past contract violations involving Musk-owned companies and the need to ensure its technology is used within its terms of service.What is the proposed date for Cursor to lose access to OpenAI's models?OpenAI has proposed November 12, 2026, as the date when Cursor will lose direct access to its artificial intelligence models.How does the acquisition of Anysphere by SpaceX affect Cursor's AI model strategy?The acquisition places Cursor under Musk's corporate umbrella, complicating its relationship with OpenAI. Cursor has begun to diversify its AI model offerings and reduce dependence on any single provider, including OpenAI. This shift comes as other AI companies, like Anthropic, plan to expand their support for Cursor.end of article