# xAI’s general counsel warned staff to limit contact with Cursor employees weeks after the two teams began working together.

*genai, business · news · 2026-05-26 · TNW*

## Key points

- xAI's general counsel warned staff to limit contact with Cursor weeks after collaboration began.
- Cursor employees have been working on-site at xAI prior to legal antitrust guidance being issued.
- SpaceX has a 30-day post-IPO window to acquire Cursor, else owes a $10 billion breakup fee.
- All 11 xAI co-founders have left following layoffs and operational turmoil under Michael Nicolls.

**Companies:** SpaceX, Cursor, xAI
**Countries:** United States

[Read the full story on TNW](https://thenextweb.com/news/xai-cursor-gun-jumping-antitrust-spacex-ipo)

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