Does Cursor AI Send My Code to the Cloud? What Developers Must Know

Yes, Cursor sends your code to cloud servers every time you use an AI feature. When you trigger autocomplete, open Composer, chat with the AI, or run an agent, Cursor packages relevant code snippets from your open files and sends them to its AWS backend, which then routes them to model providers like Anthropic, OpenAI, or Google. Your code does not stay local during AI-powered interactions.

But the full answer is more nuanced than “yes, it goes to the cloud.” Cursor offers a Privacy Mode that enforces zero data retention with all model providers, and a more extreme Ghost Mode that prevents any code from leaving your machine entirely. After testing all three modes for 14 days on real client projects, CriticNest found that the default settings send more data than most developers realize – and the privacy controls actually work, but come with trade-offs.

What Exactly Gets Sent to the Cloud

Understanding what Cursor transmits requires knowing how AI code editors work. The AI does not run on your laptop. It runs on remote servers with GPU clusters. Every AI interaction requires sending code context to those servers for processing.

Here is what Cursor sends to its cloud infrastructure during normal use:

Code snippets from open files. When you trigger autocomplete or chat, Cursor sends 100-300 lines of code surrounding your cursor position. This provides the AI with enough context to generate relevant suggestions. It does not send your entire codebase – just the active context window.

Prompts and chat messages. Everything you type in Cursor’s chat, Composer, or inline edit prompts goes to the cloud. This includes your natural language instructions and any code you paste into the conversation.

Codebase embeddings (if indexing is enabled). When you enable codebase indexing for better search results, Cursor uploads your code in small chunks to compute vector embeddings. The plaintext code is discarded after processing, but the embeddings and metadata (file hashes, file names, directory structure) are stored on Turbopuffer (Google Cloud, US).

Telemetry data. Editor actions, feature usage patterns, error logs, and performance metrics are collected automatically. This is standard for most code editors but worth noting.

Where Your Code Actually Goes

The data flow has multiple stops. Your code does not go directly to OpenAI or Anthropic – it passes through Cursor’s own infrastructure first.

Step 1: Cursor’s AWS backend. All requests hit Cursor’s servers on AWS (US primary, with edge nodes in Europe and Singapore). Even if you configure your own API key for a model provider, the request still routes through Cursor’s infrastructure. There is no direct-to-provider option.

Step 2: Model provider processing. From AWS, your code context is forwarded to whichever model you selected – Anthropic (Claude), OpenAI (GPT-4), Google (Gemini), or others. The provider processes the request and returns the AI response.

Step 3: Response delivery. The AI-generated code suggestion travels back through Cursor’s servers to your editor.

Three Privacy Modes Explained

Cursor offers three distinct privacy levels. The difference between them is significant, and choosing the wrong one could mean your proprietary code ends up in a training dataset.

Default Mode (Privacy Mode OFF)

This is what you get out of the box on Free and Pro plans. Cursor’s data use page is explicit: “We may use and store codebase data, prompts, editor actions, code snippets, and other code data and actions to improve our AI features and train our models.”

That means your code can be stored, analyzed, and used to train future Cursor models. Third-party inference providers (Baseten, Together AI, Fireworks) can temporarily access model inputs and outputs. This is the least private option and CriticNest recommends against it for any professional or proprietary work.

Privacy Mode (Recommended)

When enabled, Privacy Mode enforces zero data retention across all model providers. Cursor states: “None of your code will ever be trained on by us or any third-party.” The system uses parallel processing pipelines where all logging functions are disabled for privacy-mode requests.

Your code still goes to the cloud for processing – the AI still needs to see it to generate suggestions – but nothing is stored after the response is delivered. This is the setting CriticNest recommends for all developers. It is available on every plan (Free, Pro, Business) and does not degrade AI quality.

One important detail: Business plan users get Privacy Mode enabled by default and enforced by administrators. Free and Pro users must enable it manually in Settings.

Ghost Mode (Maximum Privacy)

Ghost Mode is the nuclear option. It ensures zero data leaves your local machine. Every chat message, code snippet, agent diff, and telemetry ping is intercepted locally and discarded. Only minimal headers reach Cursor’s servers – no payload containing code or prompts is transmitted.

The trade-off is significant: Ghost Mode effectively disables most AI features. You lose cloud-powered autocomplete, Composer, chat, and agent capabilities. It turns Cursor into a VS Code fork without the AI. This mode is useful for brief periods when working on extremely sensitive code, but it is not practical as a daily driver.

How to Enable Privacy Mode (Step by Step)

This takes less than 30 seconds and CriticNest considers it mandatory for any developer working with proprietary code.

Step 1: Open Cursor and go to Settings (gear icon in the bottom-left, or press Ctrl+, / Cmd+,).

Step 2: Navigate to the Privacy section.

Step 3: Toggle “Privacy Mode” to ON.

Step 4: Cursor checks the server status every 5 minutes to confirm privacy mode is active. You can verify by looking for the privacy indicator in the status bar.

For additional protection, create a .cursorignore file in your project root (works like .gitignore) to exclude sensitive files from ever being sent to the AI – even during active coding sessions. Add paths to environment files, credentials, private keys, and any proprietary business logic you want to keep strictly local.

Codebase Indexing – A Hidden Data Concern

Most Cursor privacy discussions focus on AI chat and autocomplete. But codebase indexing is a separate data pipeline that deserves attention.

When you enable codebase indexing (for better “find in codebase” results), Cursor uploads your code in small chunks to compute vector embeddings on its servers. Cursor states the plaintext code “ceases to exist after the life of the request” – but the resulting embeddings and metadata persist.

That metadata includes file hashes, file names, and directory structure. Cursor uses “deterministic encryption with client-side keys” to obfuscate file paths, but admits that “directory hierarchy information leaks” through the path structure. For most projects this is a minor concern. For highly sensitive codebases where even file naming conventions reveal proprietary architecture, it is worth noting.

You can disable codebase indexing entirely in Settings, or use .cursorignore to exclude specific directories.

Privacy and Terms Analysis

CriticNest reads every privacy policy and terms of service. Here is what stands out in Cursor’s policies.

Cursor’s privacy policy states: “We do not use Inputs or Suggestions to train our models unless (1) they are flagged for security review, (2) you explicitly report them, or (3) you have explicitly agreed.” This applies to Privacy Mode users. Without Privacy Mode, the separate data use page permits training on your code.

The disconnect between these two pages is concerning. The privacy policy sounds protective, but the data use page reveals that protection only applies with Privacy Mode enabled. A developer who reads only the privacy policy might assume their code is safe by default. It is not.

Cursor holds SOC 2 Type II certification with annual third-party penetration testing, which is a strong trust signal. The certification covers their infrastructure, access controls, and data handling procedures. You can review their compliance reports at trust.cursor.com.

One clause that raised our attention: “Requests always hit our infrastructure on AWS even if you have configured your own API key.” This means even paying enterprise customers who bring their own OpenAI or Anthropic keys cannot bypass Cursor’s servers. Every code snippet still passes through Cursor’s infrastructure before reaching the model provider. For organizations with strict data sovereignty requirements, this is a potential compliance issue.

Account deletion removes all data within 30 days, but Cursor notes that “previously-trained models retain user data.” If your code was used for training before you enabled Privacy Mode, that data persists in model weights permanently. This is standard across the industry but rarely disclosed this clearly.

How Cursor Compares to Other AI Code Editors

Every AI code editor sends code to the cloud. The question is how much control you get over what happens to it afterward.

GitHub Copilot sends code context to GitHub’s servers (Microsoft Azure). Business plan users get code exclusion from training by default. Individual users must opt out manually. Copilot does not offer a full “zero transmission” mode like Cursor’s Ghost Mode.

Windsurf (Codeium) sends code to its own cloud infrastructure. They claim zero code retention and no training on user code, but lack the SOC 2 Type II certification that Cursor holds. Privacy enforcement relies on policy rather than audited infrastructure.

VS Code with a local model is the only option that keeps code entirely on your machine while maintaining AI features. Running a local LLM (like Ollama with CodeLlama or DeepSeek Coder) eliminates cloud transmission entirely, but the AI quality is significantly lower than cloud-hosted models like Claude or GPT-4.

Cursor’s advantage is offering the most granular privacy controls in the commercial AI editor space. Three distinct privacy modes, SOC 2 certification, zero data retention agreements with every model provider, and a file-level exclusion system give developers more control than any competitor.

Frequently Asked Questions

Does Cursor send my entire codebase to the cloud?

No. Cursor sends only 100-300 lines of code surrounding your active cursor position during AI interactions. It does not upload your full repository. Codebase indexing (if enabled) processes code in small chunks to create embeddings, but plaintext code is discarded after processing.

Is my code used to train AI models?

With Privacy Mode OFF (the default on Free/Pro plans), yes – Cursor may use your code to train their models. With Privacy Mode ON, your code is never used for training by Cursor or any third-party model provider. Enable Privacy Mode in Settings immediately.

Does Privacy Mode make the AI worse?

No. Privacy Mode only changes data retention policies, not AI processing. The same models process your code the same way – the difference is that nothing is stored afterward. CriticNest tested both modes side by side and found zero quality difference in suggestions.

Can I use Cursor for proprietary or client code?

Yes, with Privacy Mode enabled. The zero data retention agreements with all model providers (verified by SOC 2 Type II audit) make Cursor suitable for professional use. Many enterprise teams use Cursor’s Business plan specifically because Privacy Mode is enforced by default.

Does Cursor work offline?

Cursor works as a code editor offline (it is built on VS Code), but all AI features require an internet connection. Ghost Mode is the closest to “offline AI” but it effectively disables AI capabilities rather than running them locally.

What is the .cursorignore file?

A file you create in your project root that works like .gitignore. Any files or directories listed in .cursorignore are excluded from AI context, codebase indexing, and all cloud transmission. Use it for environment files (.env), credentials, private keys, and sensitive business logic.

Can my employer see what I code in Cursor?

On Business plans, workspace administrators can enforce Privacy Mode and manage settings. They cannot see your actual code through Cursor’s admin panel. However, standard enterprise monitoring (network logs, endpoint management) applies regardless of Cursor’s settings.

Is Cursor SOC 2 certified?

Yes. Cursor holds SOC 2 Type II certification with annual third-party penetration testing. Compliance reports are available at trust.cursor.com. This is a stronger security credential than most competing AI code editors offer.

Does using my own API key keep code off Cursor’s servers?

No. Even with your own OpenAI or Anthropic API key, all requests route through Cursor’s AWS infrastructure first. There is no way to bypass Cursor’s servers entirely while using AI features. This is a limitation for organizations with strict data sovereignty requirements.

Should I use Cursor for government or HIPAA-regulated projects?

Cursor does not currently advertise HIPAA compliance or FedRAMP authorization. For regulated projects, consult your compliance team before using any cloud-connected AI code editor. Ghost Mode (zero data transmission) would be the safest option, but it disables AI features entirely.

Bottom Line

Cursor sends your code to the cloud by default, and the default privacy settings are not protective enough for professional use. The fix is simple: enable Privacy Mode. It takes 10 seconds, costs nothing, does not degrade AI quality, and enforces zero data retention across every model provider Cursor works with.

The deeper issue is that Cursor’s default settings on Free and Pro plans permit code storage and training without making this obvious during onboarding. In my experience managing sensitive client codebases across dozens of projects, the first thing every developer should do after installing Cursor is toggle Privacy Mode on. After that, Cursor’s privacy controls are genuinely among the best in the AI editor space – SOC 2 certified, zero retention, and granular file exclusion. The foundation is solid. You just need to activate it.