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Maybe the play here is a way to sneak sneak Grok into enterprise by calling it Cursor. Or they'll just give up on it and run Cursor's fine-tuned Kimi on Colossus.
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They'll sign a contract, and the contract will be very clear about whether using user prompts as training data is allowed or not. They're not going to care much about reputation; they'll care about the terms they sign with.
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I don't get the sense that Elon's companies care much for the contracts they sign.

e.g. https://arstechnica.com/tech-policy/2022/12/twitter-stiffs-s...

I wouldn't trust a contract from one of Elon's companies unless they were willing to put in escrow an amount that would make me whole in case of a breach on their side. (And that amount would be quite large in the case of a potential breach involving using prompt data for training.)

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