OpenAI to End Cursor Contract After SpaceX Acquisition

OpenAI announced on August 28, 2026, that it will terminate its contract with the AI coding tool Cursor on November 12, 2026, following Cursor's acquisition by SpaceX. The decision marks a significant escalation in the long-standing rivalry between OpenAI CEO Sam Altman and SpaceX CEO Elon Musk. In a statement, OpenAI said it could not be confident that SpaceX would use its technology within the agreed terms of service, citing a history of contract violations by Musk-owned companies. The company referenced past breaches by X, formerly known as Twitter, and an admission under oath that xAI, now part of SpaceX, had violated OpenAI's terms. The agreement with Cursor included a clause allowing OpenAI to terminate the contract following a change in control, and the company said it chose the November 12 date to provide the maximum notice allowed. The move affects developers who use Cursor's platform, which helps software engineers generate and edit code. Cursor was founded in 2022 and initially gained popularity for being model-agnostic, allowing users to choose between AI models from providers like OpenAI and Anthropic.