OpenAI will wind down its contract providing models to Cursor, the AI coding editor, following the tool’s acquisition by SpaceX. The company announced the decision on August 28 with no timeline or further explanation.
Cursor is one of the most widely used AI code editors, and OpenAI models have long powered parts of its experience. The wind-down means SpaceX will need to line up alternative model supply for the editor, or lean on other providers for its core features.
The move fits a pattern of SpaceX sweeping up AI coding assets. Earlier this month a report said the company had also targeted Cognition, maker of the Devin coding agent; Cognition insisted it was not for sale. With Cursor, the deal closed and OpenAI has now chosen to withdraw its technology rather than keep serving a rival-owned product.
OpenAI has been tightening control over where its models run as the competitive line between model labs and coding tools blurs. The company did not say whether the decision was financial, strategic or tied to the change of ownership, and it offered no guidance on what happens to existing Cursor users who rely on OpenAI-powered features.
