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OpenAI said on August 28, 2026 that it intends to wind down its contract supplying OpenAI models to Cursor after SpaceX acquired the coding platform. The company proposed a transition through November 12, 2026, while stressing that the date is not yet final and will be confirmed between the two companies.

What did OpenAI decide?

OpenAI says its agreement with Cursor gives it a limited cancellation window following a change of control. The company says it is using the longest notice period available under the contract so developers can retain access to the models Cursor already uses for as long as possible during the transition.

OpenAI also said it does not plan to provide future models to Cursor under the agreement. In explaining that decision, it specifically referenced Astra, an upcoming OpenAI model, and said more capable systems create a higher level of responsibility around how large partners use them.

What changes for Cursor users?

During the proposed transition, OpenAI says Cursor can continue using the OpenAI models it already has access to unless Cursor ends that access earlier. OpenAI has outlined three main alternatives for users who still want OpenAI models inside the app: bring an OpenAI API key, use the Codex IDE extension inside Cursor, or connect through a compatible AI gateway provider.

Those routes do not replicate every Cursor workflow. OpenAI’s Help Center says personal API keys or gateway credentials apply to supported local Chat and Agent requests, but not to Cursor Tab, Auto routing, Cloud or Background Agents, Automations, the Cursor CLI, or Cursor’s API and SDK. API usage is also billed separately from Cursor or ChatGPT subscriptions.

Why is OpenAI ending the agreement?

OpenAI frames the decision as a contract and terms-of-service compliance issue following Cursor’s change of ownership to SpaceX. That is OpenAI’s stated rationale; its announcement does not identify a specific technical misuse inside Cursor itself. The confirmed facts are therefore the planned contract wind-down, the proposed transition period, and the alternative access guidance, while the trust and compliance concerns should be understood as OpenAI’s position.