Cursor, the company behind the Cursor’s AI code editor, has suffered an embarrassing incident as a result of its AI support bot hallucinating company policies.

Cursor is a popular AI code editor in use by OpenAI, Perplexity, Midjourney, Samsung, Shopify, and others. In a post on Reddit, entitled “PSA: Cursor Now Restricts Logins to a Single Machine,” a user evidently received a message saying that Cursor could only be used on a single machine.

In response, the original poster said their entire company was ditching Cursor.

I literally just canceled my sub and moved to AUGMENT CODE.

I was dumping like $700/wk into Cursor through work, and now we’re purging it completely.

Other users were equally unforgiving.

I’m seeing less and less value in cursor as an IDE. It was ahead of the game for a while but they seem to have lost their way and got stuck. The docs feature doesn’t seem to work. The max features make way too many tool calls. There’s no more innovation coming from them, just shitty billing practices.

I guess that’s what happens when you start taking big funding rounds. There’s lots of pressure to show income.

It feels like both cursor and windsurf are kind of dead in the water now. Jetbrains has Junie which is as good an agent as either of them. Roo code is pushing faster and better updates than Cline. I dare to say copilot has seen the light as well. I can’t really think of a reason to pay for cursor anymore. There’s Claude code and augment, and aider and the list of capable alternatives is getting longer.

Unfortunately, it appears that Cursor never changed their policy to restrict logins to a single machine. One of the developers responded that the policy didn’t exist, and that an errant AI bot had created it.

Hey! We have no such policy. You’re of course free to use Cursor on multiple machines.

Unfortunately, this is an incorrect response from a front-line AI support bot. We did roll out a change to improve the security of sessions, and we’re investigating to see if it caused any problems with session invalidation. We also do provide a UI for seeing active sessions at cursor.com/settings.

Apologies about the confusion here.

Cursor’s experiment underscores the danger of relying on AI bots, especially given their propensity to hallucinate details and create fabrications.