The telemetry section of the TOS explicitly clarifies that that does not restrict their ability to use the data that is sent to them.
> Customer may configure the Software to opt out of the collection of certain Telemetry Processed locally by the Software itself, but Zed may still collect, generate, and Process Telemetry on Zed’s servers.
Note that they have (or did have, I haven't used their editor in awhile) an AI tab completion feature... it's safe to assume that all of the code you edit is sent to them at least when that is enabled.
The telemetry section of the TOS explicitly clarifies that that does not restrict their ability to use the data that is sent to them.
> Customer may configure the Software to opt out of the collection of certain Telemetry Processed locally by the Software itself, but Zed may still collect, generate, and Process Telemetry on Zed’s servers.
Note that they have (or did have, I haven't used their editor in awhile) an AI tab completion feature... it's safe to assume that all of the code you edit is sent to them at least when that is enabled.