xAI tells employees to limit their interactions with staff from AI coding startup Cursor, according to reporting from Bloomberg and The Next Web. The guidance is described as originating from James Burnham, xAI’s general counsel, who is portrayed as having previously held senior legal roles in the U.S. government. Both outlets say the directive is aimed at moderating day-to-day contact with Cursor employees.
The warning comes weeks after Musk’s xAI publicly discussed a potential acquisition of Cursor. xAI is linked to a possible deal in which SpaceX holds an option to acquire Cursor for $60 billion, a figure cited in the coverage. The reports characterize the instruction as an internal company directive rather than a public statement, and they do not provide further detail about what specific restrictions employees must follow.
Overall, the accounts place the communication within the context of ongoing acquisition-related activity involving Cursor and highlight that xAI staff are being asked to manage contact with Cursor personnel while those plans develop.
