What happened
OpenAI announced on August 28, 2026, that it will wind down its contract providing OpenAI models to Cursor, following Cursor's acquisition by SpaceX. The announcement was made in a post on OpenAI's website, stating the decision to wind down the contract. No further details were provided.
Why it matters
This decision could impact Cursor's ability to use OpenAI models in its products, potentially affecting its users and the competitive dynamics in the AI coding assistant market. The acquisition by SpaceX adds a new dimension to the relationship between the companies.