Companies don't typically publish blogs when they update their terms of service or privacy policies. These changes usually slip past in updated docs or changelogs, and this approach makes sense: nobody enjoys reading a terms-of-service update, and we don't particularly enjoy writing one.
We're writing this post because we want to be upfront. We believe the best work happens in the open; it's why we're open source, and it's how we think about everything from product development to the way we handle your data. That belief only matters more as we grow. Legal documents have a reputation for obscuring intent, so we hope these terms do the opposite: make our commitments clearer as the product and business become more complex.
Zed has changed a lot since our terms were last updated. The editor now includes AI features, collaboration, subscriptions with usage-based billing, and integrations with third-party providers. And, as more teams adopt Zed for production work, our agreements need to meet the baselines that procurement teams expect from enterprise-ready software. The legal language needed to catch up.
The old terms had ambiguous language, so we restructured them to be clearer and plainer. We documented practices that were already in place but never written down, especially around AI data handling. We standardized to better reflect industry norms and best practices.
TL;DR
- Effective March 2, 2026, we're updating our Terms of Service, Privacy Policy, and related documentation.
- Our privacy commitments have not changed. We don't sell your data. We don't train on your data unless you opt in. We don't allow our AI providers to train on it either. You own your code and your AI-generated output.
- We added a Cookie Policy and consent banner so you can manage your preferences.
We collect as little as possible. AI features send code context to a provider, get a response back, and discard the data. If you want to help us improve, you can opt in per conversation by rating a response. If you don't rate it, we don't store the conversation.
When you use Zed-hosted models, your data goes to a specific provider: Anthropic, Google, OpenAI, or xAI. We name which providers we use, link to their terms, and hold contractual guarantees that they won't train on your data. If you bring your own API key or use an external agent via ACP, that relationship is between you and the provider.
Everything else follows the same principle: you should know what's happening and be able to turn it off. Telemetry is configurable. Cookie analytics require opt-in. AI feedback sharing is per-conversation. Our documentation for telemetry, AI data handling, and Data and Privacy FAQs covers what data flows where.
Our privacy stance is the same. Zed is privacy-first by default.
We do not train on your code. The updated Terms now state explicitly:
"Zed and its AI Providers will not retain or use Customer Data for the purpose of improving or training the Service or any AI Provider products, except to the extent Customer explicitly opts-in".
This was already our practice. Now it's in the contract for all users.
Zero Data Retention with our AI providers. When you use Zed's hosted models, we maintain Zero Data Retention agreements with Anthropic, Google, OpenAI, and xAI. Your prompts and code context are processed to generate a response and then discarded. Our AI Features and Privacy docs have more details.
We do not sell your data. We do not share your data with third parties for cross-context advertising, and we do not use third-party tracking cookies that follow you across the web. We now honor Global Privacy Control (GPC) signals from your browser. This commitment is codified in our Privacy Policy.
You control telemetry in the editor. Client-side telemetry (usage metrics, crash reports) can be disabled in Settings. Server-side telemetry is collected when you use hosted services like AI or Collaboration because those services need it to function, but it never includes your source code. We publish our telemetry event types in the open source codebase so you can audit exactly what we collect.
You own your AI-generated output. Zed irrevocably assigns any rights it may hold in AI-generated Output to you.
The document has been restructured with clear sections, defined terms, and consistent language. The substantive changes:
- Open source. The old terms included restrictions like "don't reverse engineer" and "don't create derivative works" that conflicted with Zed's open source licenses. The updated terms clarify that where an open source license applies, it governs.
- Billing. The terms now describe subscription plans, auto-renewal, consumption-based usage fees for AI prompts beyond your plan's included amount, and what happens if payment lapses. Current pricing is at zed.dev/pricing.
- Arbitration. The updated Terms include a binding arbitration clause with a class action waiver. Arbitration provides a faster, lower-cost resolution process for disputes between individual users and Zed compared to traditional litigation. We recognize this is a meaningful legal trade-off, which is why we include a 30-day opt-out window after you accept the Terms. Section 15 has the full details, including how to opt out.
- Age requirement. You must be 18 or older to use Zed’s AI-enabled software-as-a-service offering (the “Service").
- Jurisdiction moved from California to Delaware. Zed is incorporated in Delaware; we're aligning governing law with state of incorporation.
The full terms include additional updates to liability, indemnification, and other standard legal provisions. If you have questions after reading the new Terms, reach out to [email protected].
- Plain-language summary. The Privacy Policy now opens with a summary of what we collect, what we don't do, and how to reach us.
- Dedicated privacy contact. Privacy requests go to [email protected] with the subject line "Privacy Request."
- Universal rights. Access, correction, and deletion rights are available to all users regardless of location, not just those in regions with specific privacy legislation.
- No-training guarantee. The Privacy Policy now states clearly: "We don't sell your data and we don't allow AI providers to train on it."
- Zero Data Retention. Our ZDR arrangements with hosted AI providers are documented in our AI Features and Privacy documentation, with links to each provider's commitments.
- Cookie Policy. We've added a separate Cookie Policy and a consent banner. Essential cookies (authentication, CSRF protection, session management) are always active because the site can't function without them. Analytics cookies require your opt-in.
We've also updated several docs pages:
- Privacy and Security: overall approach and links to related docs
- AI Features and Privacy: how each AI feature handles your data, including ZDR details and opt-in edit prediction training
- Telemetry: what client-side and server-side telemetry collects, how to disable it, and how to audit it
- Acceptable Use Policies: third-party provider policies that apply when you use their services through Zed
- Subprocessors: the subprocessors Zed uses and their respective purposes.
Do I need to do anything?
You'll be signed out of Zed and prompted to review and accept the updated Terms when you sign back in. If you want to opt out of the arbitration clause, you have 30 days from acceptance. Section 15 of the Terms has the details.
Are you training AI on my code?
No. Both the Terms and Privacy Policy say this. Our hosted AI providers (Anthropic, Google, OpenAI, xAI) operate under Zero Data Retention agreements with us, and do not train on your data when you use Zed Pro. If you bring your own API key instead of going through Zed Pro, then the provider's terms apply. The one exception is edit prediction training data; if your code is open-sourced (under a limited set of permissive licenses), you can opt into making your code eligible for edit prediction training. If you don't opt in, or if your code is not available under one of those specific permissive licenses, it will not be used for training.
Are you selling my data?
No. We don't sell personal data to third parties. We don't share data for cross-context advertising.
What data do you collect, and why?
Contact and account information to run the service. Client-side telemetry (file extensions, features used, project statistics) to improve Zed, which you can disable. Server-side metadata when you use hosted services (token counts, rate-limiting data) to operate those services. Payment information is handled by our third-party processor and never touches Zed's servers. Full details are in the Privacy Policy and telemetry docs.
What happens if I decline analytics cookies?
Nothing. The site works the same. We won't load analytics cookies or share browsing data with Amplitude.
Effective date: March 2, 2026
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