This is not the right thing, this is the tactical thing. If you have an LLM with less than 1% of the share to begin with, you suffer from bad rep and you got caught uploading user data, one of the very few remaining tactical moves to try to climb out of it is this.
It's definitely a smart move. Could easily leverage this to overtake competition.
I don't know anyone who would trust Grok Build anymore. I'd be wary of Cursor in the next few months too.
Yes, tactical is the right word because it might be a tactical win but it would be a strategic failure. Musks whole meme empire runs on vibes. The second there's a crack in the dam it all comes down. None of the valuations of anything he touches make sense and something like utterly failing to run with the AI big boys is enough to do that.
Another tactical move is to just stop. You're allowed to exit the AI business. Nobody's forcing you to keep throwing money into the furnace. Just be a rocket company. All of the xAI founders left. Your product's brand name is mud. Just stop doing that and build spaceships.