OpenAI plans to wind down its agreement to provide AI models to Cursor, following SpaceX’s acquisition of Anysphere, the parent company of the popular AI coding platform. This adds to the long-running dispute between OpenAI CEO Sam Altman and Elon Musk.
OpenAI proposed November 12, 2026, as the date to stop supplying its models through Cursor. Reportedly, the date provides developers with the maximum notice permitted under its contract.
OpenAI said, “We intend to terminate its agreement and suggested November 12, 2026, as the date, as Cursor 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.” OpenAI further explained that the action will be based on concerns over contract violations rather than Cursor.
Cursor co-founder Michael Truell said, “Discussions with OpenAI are continuing.” The dispute arises amidst SpaceX’s recent takeover of Anysphere for an all-stock deal worth USD 60 billion. Anysphere is the owner of the software application known as Cursor. Currently, OpenAI wants to provide developers with maximum notice before the change takes effect.
OpenAI’s exit could create an opportunity for rival AI company Anthropic. Anthropic also plans to increase computing capacity to support its Claude models on Cursor.
The development could reshape the competitive balance among AI model providers inside coding platforms. Cursor depends on a multi-model approach, allowing developers to select different AI systems for coding tasks.
The transfer of ownership triggered a clause in the agreement between OpenAI and Cursor. This enabled the artificial intelligence firm to terminate its deal during a specific period of time after the change of control.
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