Amidst deteriorating ties between OpenAI CEO Sam Altman and xAI CEO Elon Musk, the former’s company announced it will stop providing its AI models to coding platform Cursor by November citing contract violations after it was acquired by SpaceX.

In a statement released Saturday, OpenAI said it has notified SpaceX that it intends to wind down its contract to provide AI models to Cursor by November, claiming to have provided maximum notice time allowed under its agreement.

We’re ending our partnership with Cursor following its acquisition by SpaceX. Under our proposal, Cursor’s direct access to our models would end on November 12.

We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care…

— OpenAI (@OpenAI) August 29, 2026

The move comes after SpaceX’s acquisition of assets linked to Musk’s companies, which OpenAI said has raised concerns about whether its technology will continue to be used in compliance with its terms of service.

“We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts,” read a statement by OpenAI.

Meanwhile, Cursor co-founder Michael Truell opposed the decision by OpenAI saying that its models hardly serve 5% of Cursor user traffic.

“We’re sorry to see that OpenAI put out a note saying they plan to block Cursor users from accessing OpenAI models in three months,” said Truell.

We’re sorry to see that OpenAI put out a note saying they plan to block Cursor users from accessing OpenAI models in three months.

OpenAI models serve about 5% of Cursor user traffic, and we’re speaking with the OpenAI team to resolve this.

Cursor was one of the very first…

— Michael Truell (@mntruell) August 29, 2026

Truell added that Cursor was among OpenAI’s earliest customers and that the two companies had worked closely together for years. He said Cursor had trusted OpenAI as “neutral infrastructure” for its business and that the companies were now in discussions to resolve the dispute.

OpenAI, however, said its concerns extend beyond the current contract. The company said large partnerships typically require customized agreements covering compliance and safety requirements, particularly as AI models become more capable.

The company pointed to its past disputes with Musk’s businesses, including X, formerly Twitter, and xAI. OpenAI said X previously breached contractual terms following Musk’s acquisition of Twitter, while Musk acknowledged under oath earlier this year that xAI had violated OpenAI’s terms of service.

OpenAI said a change-of-control provision in its agreement with Cursor gives it a limited window to cancel the contract. Rather than cutting off access immediately, the company said it chose November 12 as the latest possible termination date while ensuring that future models, including its upcoming Astra model, would not be supplied to Cursor.

The decision could affect developers who use Cursor’s AI-powered coding tools, although OpenAI said it is prepared to provide additional support during the transition.

Also Read: Musk vs Altman in Court: “I Didn’t Want to Pave the Road to Hell”