OpenAI to cut off Cursor after SpaceX acquisition
Our decision on Cursor following its acquisition by SpaceX
OpenAI has notified SpaceX that it will terminate its contract providing OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026. The decision stems from concerns that SpaceX, now controlling Cursor and xAI, may not comply with OpenAI's terms of service, citing Musk's past contract violations. OpenAI emphasizes respect for Cursor's team and product, and aims to support affected developers during the transition.
We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts.
- rgbrenner
Anthropic already banned xAI for very similar ToS violations earlier this year: https://x.com/kyliebytes/status/2009686466746822731?s=46
So this is OpenAI following suit after Musk admitted to distilling their models.
This was bound to happen once Cursor decided to sell itself to a competing model provider.
It'll be interesting to see if Anthropic applies their ban to Cursor, or if that datacenter deal they signed with Musk changes anything.
- jackjeff
Is there some kind of alternative to Cursor in these terms
- fast because the code is already indexed no need to start every prompt rediscovering the world with rg
- in editor/vscode review much better than relying on git diff at the very end. You can click on next button to jump there. Quick edit in place. Or a quick prompt (seconds) to fix something small
- in editor completion / quick edits, when you do things by hand.
It seems that everyone loves agentic Claude code things these days but I don’t understand how you can review what it did and remain as much in the flow as you do with cursor.
Also I find that incredibly slow. By the time Claude finished a prompt I could have done a few in cursor.
And mind you, I’ve been wanting to use zed instead but the clunky vscode fork called cursor. But cursor has just a better UX for AI integration even though it’s slow and guzzle up RAM.
- redox99
It's always been clear to me that Cursor's business model of reselling others' APIs had its days numbered. Not necessarily because the providers would pull the plug, but because you wouldn't be able to compete with subsidized plans.
Cursor is already kind of useless for third party models unless you're willing to spend thousands of dollars. It's only worth it if you're going to use mostly grok/composer.
- rippeltippel
I may be a rare Cursor user around here, but I am saddened by this news. The thing that keeps me using it is precisely the ability to switch between models: I usually do brainstorm/planning with Sol or Terra, then let Composer (free) deal with the implementation. For certain tasks I use Claude, which tends to be more expensive but sometimes saves me time.
Using both OpenAI and Anthropic models, Cursor is cheaper than having two separate subscriptions, and their free tier of Composer is good enough. I will now have to reconsider my options.
- WesolyKubeczek
Eagerly waiting for waifu IDE companions right there in the UI. Peak Grok!
- sajithdilshan
I think there is still a huge market for models that are specialised in software development (system design, infrastructure, coding, etc.).
If a company can provide the access to such a model via AWS Bedrock or similar enterprise compliant platform with a decent IDE/harness they can capture billions of dollars of market.
The closest we have to this is Claude Code but I think it can even be better and specialised. Cursor has an enormous amount of data on coding and developer usage and maybe they should use that to build a proper platform
- bentt
While this isn't great for users it seems like a pretty standard circling of the wagons in preparation for the next phase in the battle for frontier AI dominance.
Ironically, as a Cursor and Claude subscriber, but not an OpenAI subscriber, this will push me back to Anthropic. I don't feel good about giving OpenAI money directly, but I've found switching to GPT 5.6 Sol now and again in Cursor to be useful. Now I'll probably just forget about OpenAI models.
- gexla
I don't see how it makes sense to use models outside of Grok or Composer in cursor unless you like the tooling to such degree that you're willing to pay out the nose for access to OpenAI and Anthropic to use with that tooling. And Codex is regularly scoring towards the top among harnesses, so you might as well use the best harness available for the given model. I'm happy with Grok and Composer in Cursor. If Cursor wants to add more models, they should host more open models.
- tanepiper
What a shame for Cursor. I found it a great tool - I actually liked Composer 2.5; but now being bought by SpaceX has for a while left a bad taste - and they keep pushing Grok and now GrokBot.
I took the 50% discount instead of cancelling - but with this I'll likely not renew.
So sad to watch them go from great to mediocre in such a short time.
- ergocoder
Cursor founder just tweeted that he was sad to see this ban and that OpenAI model represented around 5% of total usage.
Burn.