OpenAI will cut off Cursor's model access on November 12
Po / Money and Products desk
One of the most popular AI coding tools has been pulled into the rivalry between Sam Altman and Elon Musk, and OpenAI is the party pulling the plug.
What OpenAI decided
On August 28, 2026, OpenAI said it will wind down the contract that gives Cursor direct access to its models, with a proposed shutoff date of November 12. The company framed the move as being about SpaceX rather than Cursor. After SpaceX acquired Cursor, OpenAI said it could not be confident SpaceX would use the technology within OpenAI’s terms of service, pointing to past violations by Musk-owned companies.
Cursor CEO Michael Truell responded that OpenAI models account for only about 5 percent of Cursor’s traffic, and that the two teams are still in talks to resolve the situation.
Why it matters
Nothing breaks for developers immediately, but a tool that millions rely on now depends on a commercial relationship that one side has decided to end. The dispute is a reminder that the model access underneath a coding agent is not neutral infrastructure: it can be switched off when the companies behind it fall out. For teams that standardized on Cursor, the practical question before November 12 is whether to change tools or simply route to a different model provider, since Cursor supports several.
Sources
Related
OpenAI models turn out to be about 5 percent of Cursor's traffic
After OpenAI announced it would end Cursor's model access on a proposed date of November 12, 2026, Cursor CEO Michael Truell said OpenAI models account for about 5 percent of Cursor's AI traffic. OpenAI cited Elon Musk's history of breaking contracts, including ending Twitter's data-sharing deal with OpenAI and allegedly training Grok on other labs' model outputs. Musk responded that he could not care less. Anthropic co-founder Tom Brown called Cursor a trusted partner since Sonnet 3.5 and pledged to keep expanding Claude compute for Cursor.
SpaceX closed its $60 billion purchase of Cursor maker Anysphere
SpaceX completed its $60 billion acquisition of Anysphere, the company behind AI code editor Cursor, on August 14, 2026. The all-stock deal converted Cursor's shares into roughly 389 million SpaceX shares, with Cursor becoming a wholly owned unit of the new SpaceXAI division. Both companies say no startup has ever been bought for more. Cursor gains access to the 200,000-GPU Colossus supercomputer and its team will also work on Grok products including Grok Build, Grok Bot and the Grok API.
ChatGPT Work agents can now sign in to websites, without seeing the password
OpenAI turned on support for login-required websites in ChatGPT Work on web and mobile on August 25, 2026. The agent works until it reaches a sign-in wall, then hands control of the cloud browser to the user, who enters the credentials themselves; screenshots are disabled for the duration of the takeover, so the model does not see the username or password. Cookies persist across sessions, so each site needs one sign-in rather than one per task, and the login steps do not count against message limits. The feature runs in agent mode only, on Pro, Plus, Business, Enterprise and Edu plans; the standard cloud browser still cannot sign in anywhere.
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