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Anysphere AI Support Bot for Cursor Reportedly Invents Login Policy, Leading to Subscription Cancellations

Occurred
Apr 19, 2025
Published
May 12, 2025
Source
AI Incident Database

Summary

In April 2025, users of Cursor, an AI-powered coding assistant developed by Anysphere, reported being logged out unexpectedly. An AI-powered support bot, "Sam," allegedly responded with an invented login policy to justify the behavior. The hallucinated policy was not based on any real company change. The incident reportedly led to subscription cancellations.

Developers

  • Unknown LLM developer
  • Anysphere

Deployers

  • Cursor
  • Anysphere

Harmed parties

  • Software developers
  • Small businesses relying on Cursor
  • Cursor users

Tags

  • AI hallucination
  • Customer support automation
  • Developer tools
  • Autonomous agents
  • Subscription cancellations
  • User trust erosion

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: AI support bot hallucinated a login policy causing user cancellations, representing a language model failure with limited financial harm.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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