OpenAI cuts off Cursor after SpaceX acquisition, citing Musk's history of breaking contracts
In shortOpenAI is cutting off the AI coding tool Cursor after SpaceX acquired the company, citing Elon Musk's track record of breaking contracts.
What happened
OpenAI is ending its contract with the AI coding tool Cursor after SpaceX acquired the company, saying that Elon Musk's companies have repeatedly broken contracts. The company has pulled API access from partners on multiple occasions, including blocking Windsurf after its planned sale to OpenAI and revoking OpenAI's own access over unauthorized use of Claude for benchmarks (see below).
What the report says
- According to the company, this is the maximum notice period allowed under the contract, which includes a clause giving OpenAI a limited window to end the agreement after a change in ownership.
Why it matters
Cursor creates a continuity decision for teams that depend on the affected product or supplier. They should identify fallback access and contract deadlines before the reported change takes effect.
Who it affects
Developers integrating Cursor · Procurement teams managing access to Cursor
The bigger picture
Cursor shows how supplier ownership and contract decisions can become immediate product dependencies for teams building on third-party AI services.
What happens next
- Watch the effective cutoff date, replacement access, contract terms, and migration guidance for teams that depend on Cursor.
This information is still under review.