Elon Musk's artificial intelligence company xAI has issued guidance to its employees regarding contact with workers at Cursor, an AI-powered coding startup, according to a Bloomberg report.

The directive from xAI management warns staff to restrict their interactions with Cursor employees, though the specific reasons behind the guidance were not detailed in the reporting. Cursor is known for developing AI-assisted programming tools that help developers write and edit code more efficiently.

xAI, founded by Musk in 2023, has been developing its own AI systems and recently launched Grok, a chatbot designed to compete with other major AI platforms. The company has been hiring aggressively in the competitive AI talent market as it works to establish itself alongside established players like OpenAI and Anthropic.

The relationship between AI companies and their employees' external contacts has become increasingly scrutinized as the industry grapples with intellectual property concerns and competitive dynamics. Many tech companies have implemented policies regarding employee interactions with competitors, particularly around sensitive projects or proprietary information.

Neither xAI nor Cursor immediately responded to requests for comment about the reported guidance. The AI industry has seen heightened attention to employee movement and information sharing as companies race to develop next-generation artificial intelligence capabilities.