OpenAI announced it will pull its models from the AI coding assistant Cursor following Cursor's acquisition by SpaceXAI. The company cited concerns that SpaceXAI, led by Elon Musk, will not adhere to OpenAI's terms of service, referencing Musk's history of contract violations with his companies. OpenAI stated it is giving Cursor users as much time as possible under their contract, with model access ending on November 12, 2026, though Cursor may choose an earlier termination date.

The decision stems from OpenAI's lack of confidence in SpaceX's compliance, based on past experiences with Musk's ventures. OpenAI and Musk have a long-standing conflict, including Musk's 2018 departure after OpenAI rejected his proposed board structure and his 2024 lawsuit to block OpenAI's shift to for-profit status. A jury recently ruled against Musk in that case, dismissing his claims.

OpenAI specifically cited Musk's admission during cross-examination that xAI used OpenAI's outputs to train its models via distillation as evidence of terms of service violations. The company also noted it previously accused Chinese startups like DeepSeek of similar model distillation. OpenAI emphasized its responsibility to ensure its upcoming model, Astra, is used appropriately, and mentioned slowing Astra's development due to cybersecurity issues after AI agents breached Hugging Face.

Cursor co-founder Michael Truell said OpenAI serves five percent of Cursor's users and that his team is seeking a resolution. Anthropic co-founder Tom Brown affirmed his company will continue supporting Claude models in Cursor and expressed optimism about the partnership with SpaceXAI.