A judge’s gavel on a courtroom bench (illustrative). Image: Joe Gratz / Wikimedia Commons, CC0, cropped
If you use Grok, Grok Bot or Cursor, you’ve probably just had an email about SpaceXAI’s updated terms of service. The short version: you’re now responsible for anything its AI agents do on your behalf, and it’s become much harder to take SpaceXAI, or its sister companies X, Cursor and SpaceX, to court. Here’s what the new terms, dated September 11, actually say.
You’re on the hook for what Grok’s agents do
The biggest change covers what SpaceXAI calls “Agentic Actions”: anything Grok does for you autonomously, including “web browsing, code execution, sending communications, modifying files, tool invocation, data processing, or interactions with third-party services, including financial institutions.” That covers Grok Bot, the agent that works on its own cloud computer.
The terms leave no doubt about who carries the risk: “We are not responsible for User Content or Agentic Actions. You are responsible for User Content and Agentic Actions,” including “any consequences, costs, or liabilities arising therefrom.” SpaceXAI also “disclaims all liability for Agentic Actions to the fullest extent permitted by law.”
In practice, that means if Grok Bot sends the wrong email, deletes the wrong file or makes a costly mistake with an account it’s connected to, the terms say that’s your problem. And if something does go wrong, SpaceXAI caps what it will pay at $100 or the amount you’ve paid it, whichever is greater, unless it was grossly negligent.
It’s a live question across the industry. AI agents have already broken into real systems, and even some of AI’s critics agree that users should answer for their agents. Former Google DeepMind engineer Robert O’Callahan, who quit this week over the pace of AI, argued in August:
OpenClaw users should be legally liable for everything their agent does. It’s the only way to avoid a liability vacuum where bad to terrible things happen but there is no accountability because “the AI did it”.
Robert O’Callahan, on X
It’s now much harder to sue
For users outside Europe, the dispute rules have tightened:
- Texas courts only: disputes must go to federal or state courts in Tarrant County or Wichita County, Texas, under Texas law. If that can’t be enforced, it goes to binding arbitration there instead.
- No jury, no class action: you waive the right to a jury trial and to join any class action, and that waiver now also covers “any X, Cursor, or SpaceX entity.”
- Arbitration is secret and final: it’s confidential, the arbitrator can’t order an injunction, and you can’t appeal.
- Tight deadlines: federal claims must be brought within one year.
X made almost identical changes to its own terms earlier this month, Social Media Today reported, at a time when it faces a class action over images generated by Grok. Similar clauses exist at other tech companies, but whether they hold up in court is still uncertain.
Other changes worth knowing
- Your content: you still own what you put in, but you give SpaceXAI an “irrevocable, perpetual, transferable, sublicensable, royalty-free, and worldwide” licence to use it “for any purpose.” You can opt out of it being used to train models in your settings.
- Inactive accounts: SpaceXAI can delete accounts that have been inactive for more than 120 days.
- Extras count too: add-on products and features with their own terms are treated as part of the service.
What if you’re in the UK or EU?
Different rules apply. For users in the UK, EU and Switzerland, disputes are governed by Irish law and heard in Irish courts, and SpaceXAI says this “does not deprive you of the protection” of consumer laws that can’t be signed away where you live. You also keep a 14-day right to withdraw from a new contract, and the indemnity section, which would make you cover SpaceXAI’s legal costs, doesn’t apply to European consumers.
Why it matters
As AI moves from answering questions to taking actions, who pays when it gets something wrong is becoming one of the biggest questions in tech. SpaceXAI has given its answer, in writing: you do. If you connect Grok Bot to your email, files or bank, it’s worth knowing that before you do.
Sources: SpaceXAI Terms of Service, Social Media Today, Runtime Wire, Robert O’Callahan on X
