OpenAI terminates partnership with Cursor after concerns over Musk-owned firms

OpenAI disclosed that it will revoke Cursor’s ability to use its language models beginning November 12, after concluding that a Musk-owned entity cannot be trusted to honor its terms of service. While Cursor was not accused of any wrongdoing, OpenAI pointed to earlier contract breaches involving Twitter, which Musk bought in 2022, and to testimony that xAI had trained its Grok system on OpenAI outputs. The partnership, originally set up with a short cancellation window following Cursor’s acquisition by SpaceX for $60 billion, will also prevent future model access, including the upcoming Astra release.

Cursor’s platform integrates models from several providers, listing OpenAI’s GPT-5.6 series among its offerings. The termination adds another chapter to the ongoing dispute between Musk, a co-founder of OpenAI, and the company, which recently faced a lawsuit dismissed for being filed too late. Neither OpenAI nor SpaceX responded to requests for comment.