Anthropic · Cursor · Google · SpaceX · Elon Musk · U.S. · Engadget
SpaceX officially snapped up Cursor for $60 billion on August 15
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In a 2024 study, Stanford's RegLab found hallucination rates of 17 percent and 33 percent after testing purpose-built legal AI platforms from LexisNexis and Westlaw.
Key facts
- Researcher Damien Charlotin's database has cataloged nearly 2,000 such cases worldwide, involving more than 800 lawyers and 1,100 self-represented litigants
- In a 2024 study, Stanford's RegLab found hallucination rates of 17 percent and 33 percent after testing purpose-built legal AI platforms from LexisNexis and Westlaw
- In Canadian courts alone, reported cases involving fabricated citations rose from seven in 2024 to 86 in 2025, with 39 more in the first quarter of 2026
- SpaceX officially acquired Cursor for $60 billion on August 15, bringing the code editor's legal marketing under the Grok umbrella
Summary
Companies are selling AI to lawyers faster than courts can fine them for using it. So far this year, three of the four major AI labs have either launched or pitched products aimed at lawyers. Together, it marks a push into legal services that has intensified even as lawyers continue to be fined and vilified for submitting AI filings packed with fictitious case law. The Ontario Law Society found last December that Mazaheri had used an earlier version of Grok to draft a factum (a written legal argument) for a client's appeal. A costs decision issued back in June ordered Mazaheri to pay $31,150, with the adjudicators noting that an LLM "does not appreciate nuance or exercise judgment or use a moral compass," and is "strongly predisposed to giving an answer, any answer, rather than admitting ignorance.