Employees at Elon Musk’s xAI have been instructed by the company’s top lawyer to limit their interactions with workers from Cursor, following a possible acquisition announcement of the AI coding startup by xAI just weeks prior. This directive highlights the caution the company is exercising during the acquisition discussions.

xAI: xAI is an artificial intelligence company founded by Elon Musk that develops advanced AI models and systems. The firm recently announced a possible deal to acquire the AI coding startup Cursor. Following that announcement, xAI’s top lawyer directed employees to moderate their interactions with Cursor staff.
Cursor: Cursor is an AI coding startup that builds artificial intelligence tools to assist software developers. It became the target of acquisition interest from xAI in recent weeks. This development prompted xAI to issue internal guidance limiting staff contacts with Cursor employees.

Internal Directive: xAI’s top lawyer instructed employees to carefully moderate communications with workers from Cursor amid the acquisition discussions.
Acquisition Interest: xAI announced a possible acquisition of Cursor weeks before directing staff to limit interactions with the startup’s employees.