OpenAI vs Elon Musk: Why Cursor is losing access to OpenAI models from November 12

OpenAI is cutting off one of the most prominent coding tools from access to its AI models, in a move that adds another flashpoint to the long-running battle between CEO Sam Altman and Elon Musk.

OpenAI said on August 28 that it had notified SpaceX that it intends to wind down its contract to provide OpenAI models to Cursor, the AI-powered coding platform, which is now owned by Elon Musk's X. The proposed shutdown date is November 12, 2026.

The decision is significant because Cursor has been an OpenAI customer for nearly four years and has integrated OpenAI models into its coding platform. Cursor co-founder and CEO Michael Truell said OpenAI models account for about 5% of Cursor's user traffic.

"We’re sorry to see that OpenAI put out a note saying they plan to block Cursor users from accessing OpenAI models in three months," Truell wrote on X.

He added that Cursor was "one of the very first users of OpenAI" and said the company was speaking with OpenAI in an effort to resolve the dispute.

Why is OpenAI cutting off Cursor? 

OpenAI said the decision was driven by concerns over whether SpaceX would use its technology within the company's terms of service.

"Today, we notified SpaceX that we intend to wind down our contract providing OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026," OpenAI said.

The company said it was giving Cursor the maximum contractual notice period so developers would have as much time as possible to retain access to its models.

OpenAI also pointed to its previous contractual disputes with companies controlled by Musk. It said that after Musk acquired Twitter, now part of SpaceX, the company breached the terms of its contract with OpenAI.

OpenAI further cited testimony from Musk earlier this year in which he admitted that xAI, now also part of SpaceX, had violated OpenAI's terms of service. The company said its latest model, Astra, requires an "new level of accountability" over how its technology is deployed.

"Given all of this, we’ve decided to hold the contract cancellation to the latest date we can while not providing future models to Cursor," OpenAI said.

Musk: 'I couldn't care less' 

Musk responded on X early on August 29, dismissing the move. "I couldn't care less," Musk wrote.

He also accused Altman and OpenAI President Greg Brockman of being "untrustworthy" and repeated his longstanding allegation that they "stole an open source nonprofit."

The latest clash comes against the backdrop of a much broader legal and personal feud between Musk and Altman.

Musk was among the founders of OpenAI but later left the company. His relationship with Altman subsequently deteriorated, eventually leading to a $150 billion lawsuit against OpenAI.

The dispute reached trial earlier this year, with Musk's lawyers accusing Altman of being a liar, while OpenAI argued that Musk had sought control of the company.

Cursor caught in the middle 

For Cursor, the immediate issue is the impact on developers using OpenAI models through its platform.

Truell said OpenAI models account for about 5% of Cursor's user traffic, suggesting the platform is not overwhelmingly dependent on OpenAI. But the move still threatens to disrupt a long-standing integration.

Cursor has positioned itself as an AI-first coding environment that allows developers to work with multiple AI models. Losing access to OpenAI's future models could therefore be less damaging than it would be for a platform built around a single provider. The company said it was in talks with OpenAI to resolve the issue.

Anthropic steps in 

The dispute could also benefit OpenAI's biggest competitors. Hours after OpenAI announced the planned termination, Anthropic said it intended to increase computing capacity to support Claude models on Cursor.

Tom Brown, one of Anthropic's co-founders, said the company planned to increase compute available for Claude on the coding platform.

For Cursor, the November 12 deadline provides time to negotiate with OpenAI and strengthen alternatives. For OpenAI, however, the decision signals that future access to its most advanced models may increasingly depend not just on commercial relationships, but on whether partners can meet its contractual and safety requirements.