"Built to make you extraordinarily productive, Cursor is the best way to code with AI."
Cursor is an AI-powered development environment for software development with agents, autocomplete, CLI, cloud agents, and code review features.
Officially, Cursor is positioned as a tool that enables developers to delegate tasks to agents, write code faster, and work in parallel across multiple environments. More recent releases add, among other things, an agent-centric interface, parallel multitasking with subagents, canvases, and automations.
Cursor – Anysphere
Built to make you extraordinarily productive, Cursor is the best way to code with AI
Location: USA ⓘ Anysphere, Inc., 2261 Market Street STE 86466, San Francisco, CA 94114, USA.
Pro+ Everything in Pro plus significantly more usage for OpenAI, Claude, and Gemini models.
Ultra Everything in Pro plus very high usage and priority access to new features.
Teams Everything in Pro plus shared chats, Commands and Rules, centralized billing, usage analytics, org-wide Privacy Mode, RBAC, and SAML/OIDC SSO. Other Enterprise Pooled Usage, Invoice/PO Billing, SCIM, AI Code Tracking API, Audit Logs, granular admin/model controls, Priority Support, and Account Management.
Bugbot Separate code review/bug detection offering with Pro, Teams, and Enterprise options.
Target audience
Cursor is primarily aimed at software developers, technical freelancers, start-up teams, product and platform engineering teams, as well as larger development organizations. The product is clearly focused on coding workflows, not on general office or marketing use. Cursor is particularly well suited for teams that want to actively work with agents, cloud execution, PR review, and parallel development across multiple repositories or environments.
Outstanding features
The most outstanding features are above all the agent capabilities: Cursor can delegate tasks to agents that, according to the product description, independently build, test, and demonstrate results. In addition, there is the Tab autocomplete model, Cloud Agents, the CLI, Bugbot for automated code review, as well as new features such as Agents Window, /multitask with asynchronous subagents, Canvases, and Automations for scheduled or event-triggered cloud agents. This is significantly more than a classic chat-in-the-editor approach.
Main use cases
Typical use cases include feature implementation, refactoring, debugging, codebase navigation, PR review, UI/frontend adjustments, cross-repo changes, and automated development workflows. Official examples and releases mention, among other things, parallel work in worktrees, multi-root workspaces for cross-repository changes, direct work on browser/UI elements in the Agents Window, as well as event-driven Automations and Bugbot autofix for pull requests.
Usage & notes
For data-sensitive use, Privacy Mode is central: according to Cursor, model providers are then operated with Zero Data Retention and code is not used for training purposes; without Privacy Mode, Cursor may use code/prompt/editor data for improvement and training. It is also important to note: even when using your own API keys, requests still run through the Cursor backend according to Cursor. Cursor also points out that codebase indexing under heavy load can cause repeated uploads. For good results, Cursor recommends in its best practices working with clear goals, tests, linters, and verifiable signals.
| Target audience | Assessment |
|---|---|
| Developers / software teams | Very suitable – for AI-assisted coding, refactoring, debugging, codebase questions, and agent workflows. |
| Freelancers / solo developers | Very suitable – accelerates feature development, bug fixing, and code explanation. |
| Startups / product teams | Very suitable – for rapid prototyping, MVPs, and productive software development. |
| SMBs / enterprise teams | Suitable to very suitable – especially with Teams/Enterprise due to SSO, RBAC, centralized billing, Privacy Mode, and admin controls. |
| Non-developers | Rather unsuitable – Cursor is primarily an AI IDE for software development. |
Hosting & Data
1) On-prem / local hosting
Meaning: The company operates the solution on its own hardware or within its own infrastructure. In the strictest sense, not only the application runs locally, but ideally the model as well.
2) Private cloud / data center
Meaning: The solution runs in a dedicated or more clearly separated cloud environment, often with a hosting provider or hyperscaler, but in a German data center or in a particularly controlled environment.
3) EU SaaS / managed
Meaning: The provider operates the solution itself as a service. The company uses the tool as a ready-made cloud service, ideally with EU data residency.
4) Hybrid
Meaning: One part of the processing remains internal / local / in a private cloud, while another part runs in an external cloud or EU SaaS.
5) AVV / DPA
Meaning: This is the data processing agreement or Data Processing Addendum. It governs that the provider processes personal data on behalf of the customer and is bound by the customer's instructions.
6) No training
Meaning: The provider does not use your prompts, uploads, attachments, chat histories, or outputs for training or improving the general model — ideally excluded by contract.
7) Open-source / transparency path
Meaning: There is a path toward greater technical transparency and sovereignty, for example through:
- open models
- documented components
- self-hostable parts
- traceable architecture
- export / switching options
| On-prem / local hosting | ⚠️ |
| Private cloud / data center | ⚠️ |
| EU SaaS / Managed | ❓ |
| Hybrid | ✅ |
| DPA / AVV | ✅ |
| No training on customer data | ⚠️ |
| Open source / transparency path | ❓ |
On-premises / local hosting: partially
There is a documented option for "self-hosted cloud agents" on your own infrastructure. However, this does not cover the complete on-premises solution, because according to the description, the Cursor Agent Harness handles inference and planning via Cursor Cloud, and only tool execution takes place on the user’s own machine.
Private Cloud / Data Center: Partially
The website states that agent workloads can run on your own infrastructure or in your own cloud environment. This is a private cloud path for part of the product, but not a complete private deployment of the entire solution.
EU SaaS / Managed: Indirect / Not Available
The website does not specify an EU-SaaS service operated by the provider with explicit EU/EEA data residency. Instead, the Privacy Policy mentions processing in various jurisdictions, including the U.S., and transfers for EEA users outside the EEA/UK.
Hybrid: covered
The self-hosted cloud agents are explicitly documented as a hybrid model: workers, code, and tool execution run on the customer’s own infrastructure, while inference and planning are handled via Cursor Cloud.
T&Cs / DPA: Covered
A Data Processing Addendum is published on the website at /terms/dpa. It describes subprocessors, notifications in the event of changes, and protection obligations.
No Training: Partially
A clear opt-out/no-training path is provided via “Privacy Mode”: Customer data is then not used for training by Cursor, and ZDR agreements with providers apply. However, the website also notes that when “Privacy Mode” is disabled, data may be used for improvement and training, and that abuse/risk checks may temporarily store data.
Open Source / Transparency Path: Indirect / Not Available
A true open-source, open-model, or self-hostable end-to-end path is not specified on the website. While there is transparency regarding security, the DPA, and subprocessors, as well as an infrastructure path for self-hosted agents, there is no clear open-source documentation for the entire product.
Data Processing
The documented standard processing is provided as a cloud service by Cursor/Anysphere, with processing taking place in various jurisdictions. Even when using a custom API key, requests continue to run through the Cursor backend, according to the Data Use page. When “Privacy Mode” is enabled, the website states that customer data will not be used for training and that providers adhere to zero data retention; however, the company reserves the right to conduct abuse and risk assessments. For Cloud Agents, there is a hybrid self-hosted option where code, tool execution, and build artifacts can remain in your own environment, while planning and inference run via the Cursor cloud.
Conclusion
According to the website documentation, Cursor cannot be clearly classified as a standard SaaS service with EU residency for EU/EEA users. Positive aspects include the DPA, the disclosure regarding subprocessors, SOC 2 Type II certification, and a documented “no-training” path via “Privacy Mode.” At the same time, there is no clearly designated EU/EEA data center, no binding EU data residency requirement, and no complete on-premises/self-hosting path for the entire product. Therefore, its use under the GDPR is at best conditionally acceptable, particularly with the DPA and “Privacy Mode”; for particularly sensitive EU/EEA requirements, the documentation remains incomplete.
Sources
| On-prem / local hosting | ⚠️ |
| Private cloud / data center | ⚠️ |
| EU SaaS / Managed | ❓ |
| Hybrid | ✅ |
| DPA / AVV | ✅ |
| No training on customer data | ⚠️ |
| Open source / transparency path | ❓ |
On-premises / local hosting: partially
There is a documented option for "self-hosted cloud agents" on your own infrastructure. However, this does not cover the complete on-premises solution, because according to the description, the Cursor Agent Harness handles inference and planning via Cursor Cloud, and only tool execution takes place on the user’s own machine.
Private Cloud / Data Center: Partially
The website states that agent workloads can run on your own infrastructure or in your own cloud environment. This is a private cloud path for part of the product, but not a complete private deployment of the entire solution.
EU SaaS / Managed: Indirect / Not Available
The website does not specify an EU-SaaS service operated by the provider with explicit EU/EEA data residency. Instead, the Privacy Policy mentions processing in various jurisdictions, including the U.S., and transfers for EEA users outside the EEA/UK.
Hybrid: covered
The self-hosted cloud agents are explicitly documented as a hybrid model: workers, code, and tool execution run on the customer’s own infrastructure, while inference and planning are handled via Cursor Cloud.
T&Cs / DPA: Covered
A Data Processing Addendum is published on the website at /terms/dpa. It describes subprocessors, notifications in the event of changes, and protection obligations.
No Training: Partially
A clear opt-out/no-training path is provided via “Privacy Mode”: Customer data is then not used for training by Cursor, and ZDR agreements with providers apply. However, the website also notes that when “Privacy Mode” is disabled, data may be used for improvement and training, and that abuse/risk checks may temporarily store data.
Open Source / Transparency Path: Indirect / Not Available
A true open-source, open-model, or self-hostable end-to-end path is not specified on the website. While there is transparency regarding security, the DPA, and subprocessors, as well as an infrastructure path for self-hosted agents, there is no clear open-source documentation for the entire product.
Data Processing
The documented standard processing is provided as a cloud service by Cursor/Anysphere, with processing taking place in various jurisdictions. Even when using a custom API key, requests continue to run through the Cursor backend, according to the Data Use page. When “Privacy Mode” is enabled, the website states that customer data will not be used for training and that providers adhere to zero data retention; however, the company reserves the right to conduct abuse and risk assessments. For Cloud Agents, there is a hybrid self-hosted option where code, tool execution, and build artifacts can remain in your own environment, while planning and inference run via the Cursor cloud.
Conclusion
According to the website documentation, Cursor cannot be clearly classified as a standard SaaS service with EU residency for EU/EEA users. Positive aspects include the DPA, the disclosure regarding subprocessors, SOC 2 Type II certification, and a documented “no-training” path via “Privacy Mode.” At the same time, there is no clearly designated EU/EEA data center, no binding EU data residency requirement, and no complete on-premises/self-hosting path for the entire product. Therefore, its use under the GDPR is at best conditionally acceptable, particularly with the DPA and “Privacy Mode”; for particularly sensitive EU/EEA requirements, the documentation remains incomplete.
Sources
Strengths & weaknesses at a glance
| Strengths | Weaknesses |
|---|---|
| - Very strong focus on agentic software development rather than just chat in the editor. | - No publicly documented on-prem/self-hosted model for the complete service; the AI functions run via Cursor infrastructure and model providers. |
| - Parallelization: agents can work locally, in worktrees, in the cloud, and via remote SSH. | - Primary servers are located in the USA; therefore, data protection for EU organizations is not “automatically” unproblematic. |
| - Specialized tab model for very fast autocompletion. | - When Privacy Mode is disabled, Cursor may use code/prompt/editor data to improve AI functions and for model training. |
| - Pro includes frontier models, MCPs, Skills, Hooks, and Cloud Agents. | - Even when using your own API key, requests still continue to run through the Cursor backend according to Cursor. |
| - SOC 2 Type II and publicly documented security/privacy materials. | - The Free plan is functionally limited; additional usage may be billed on a usage-based basis. |
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GDPR-compliant usage possible?
For users in the EU/EEA, use that is conditionally GDPR-compliant is documented, but not as a simple standard SaaS offering with EU data residency. Positive aspects include a published privacy policy, a Data Processing Addendum, a published list of subprocessors on the Trust Portal, documented data subject rights, and a clear “no training/zero data retention” path via “Privacy Mode.” On the negative side, according to the privacy policy, Anysphere processes personal data on servers in various jurisdictions, including the U.S., and data for EEA users may be transferred to U.S. servers or other countries outside the EEA/UK. The website does not specify an explicit EU data residency or an EU/EEA data center for the main SaaS environment. The best-documented way to achieve greater GDPR compliance is therefore to use “Privacy Mode” in conjunction with a DPA; for Cloud Agents, there is also a self-hosted infrastructure option, but it does not replace the entire Cursor Cloud, as inference and planning continue to run via the Cursor Cloud.
Positive
Privacy policy available; DPA/AVV available; subprocessors are listed at trust.cursor.com/subprocessors; data subject rights for users are described; 'Privacy Mode' is documented, including 'zero data retention' by providers and a statement that customer data will not be used by Cursor for training; SOC 2 Type II is mentioned on the security page; for Cloud Agents, there is a self-hosted option on the user’s own infrastructure.
Negative
The website does not specify guaranteed EU/EEA data residency for the standard SaaS offering. According to the Privacy Policy, processing takes place on servers in various jurisdictions, including the U.S.; for EEA users, data may be transferred to U.S. servers or other countries outside the EEA/UK. A specific server location in the EU/EEA, a dedicated EU data center, or ISO 27001 certification are not specified on the website. The self-hosted agent option is only a partial solution because planning and inference still run through Cursor Cloud.
Server Location
The website does not specify a specific EU/EEA server location. The Privacy Policy only states that personal data is processed on servers in various jurisdictions, including the U.S., and that for users in the EEA, data may be transferred to U.S. servers or other countries outside the EEA/UK. No EU data residency is specified on the website.