On Monday, a developer utilizing the favored AI-powered code editor Cursor seen one thing unusual: Switching between machines immediately logged them out, breaking a typical workflow for programmers who use a number of gadgets. When the consumer contacted Cursor assist, an agent named “Sam” informed them it was anticipated conduct underneath a brand new coverage. However no such coverage existed, and Sam was a bot. The AI mannequin made the coverage up, sparking a wave of complaints and cancellation threats documented on Hacker Information and Reddit.
This marks the newest occasion of AI confabulations (additionally known as “hallucinations”) inflicting potential enterprise harm. Confabulations are a sort of “inventive gap-filling” response the place AI fashions invent plausible-sounding however false data. As a substitute of admitting uncertainty, AI fashions typically prioritize creating believable, assured responses, even when meaning manufacturing data from scratch.
For corporations deploying these programs in customer-facing roles with out human oversight, the results may be instant and expensive: annoyed clients, broken belief, and, in Cursor’s case, probably canceled subscriptions.
The way it unfolded
The incident started when a Reddit consumer named BrokenToasterOven seen that whereas swapping between a desktop, laptop computer, and a distant dev field, Cursor periods had been unexpectedly terminated.
“Logging into Cursor on one machine instantly invalidates the session on another machine,” BrokenToasterOven wrote in a message that was later deleted by r/cursor moderators. “It is a vital UX regression.”
Confused and annoyed, the consumer wrote an e-mail to Cursor assist and rapidly obtained a reply from Sam: “Cursor is designed to work with one machine per subscription as a core safety characteristic,” learn the e-mail reply. The response sounded definitive and official, and the consumer didn’t suspect that Sam was not human.

After the preliminary Reddit put up, customers took the put up as official affirmation of an precise coverage change—one which broke habits important to many programmers’ every day routines. “Multi-device workflows are desk stakes for devs,” wrote one consumer.
Shortly afterward, a number of customers publicly introduced their subscription cancellations on Reddit, citing the non-existent coverage as their cause. “I actually simply cancelled my sub,” wrote the unique Reddit poster, including that their office was now “purging it fully.” Others joined in: “Yep, I am canceling as nicely, that is asinine.” Quickly after, moderators locked the Reddit thread and eliminated the unique put up.