That’s a strange usage of the word “cuts”. I thought GitHub terminated the deals with Google and Anthropic. It would be better if the title were GitHub signs AI deals instead of cuts.
The origin is hazy, of the theories I've seen I consider this the best one: "deal" means both "an agreement" and "to distribute cards in a card game". The dealer, in the latter sense, first cuts the card deck then deals the card. "Cut and deal" -> "cut a deal".
It could also be related to "cut a check", which comes from an era before perforated paper was widespread, when one would literally cut the check out of a book of checks.
"cuts ____ deals" is not and more closely resembles the removal of deals related to ____.