xAI's general counsel warned employees to limit contact with Cursor staff after the two teams had already been working side by side for weeks inside xAI's offices — a potential gun-jumping antitrust violation. The warning came as SpaceX filed for what could be the largest IPO in history, with an option to acquire Cursor for $60 billion in a 30-day window post-IPO. The article also details broader dysfunction at xAI: all 11 co-founders have departed, layoffs and new hires are happening simultaneously, and the company failed to pay employees a promised $420 for tax data. Cursor, meanwhile, reached $2B in annualized recurring revenue and counts 67% of the Fortune 500 as users, raising questions about whether xAI can execute a $60B acquisition given its internal chaos.
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