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Short answer: Cursor sends prompts and relevant code context to its backend for AI processing, and may pass that information to model providers. Cursor says Privacy Mode prevents Customer Data from being used for training and provides zero-data-retention commitments for covered providers, but it does not make Cursor local-only or eliminate every form of processing, caching, or exception.
What happens to your code when you use Cursor?
When you use Cursor’s AI features, the request can include your prompt and relevant code context. Cursor says requests go through its backend, where the final prompt is constructed, before being sent to a model provider such as OpenAI, Anthropic, or Google. Custom models may use other inference providers. This remains true when you supply your own API key: BYOK does not bypass Cursor’s backend. Cursor’s Data Use & Privacy Overview and its security documentation describe these data flows.
Cursor also says it temporarily caches file contents on its servers to reduce latency and network use. According to its overview, files are encrypted with unique client-generated keys that exist on the servers only for the duration of a request. That is temporary processing and caching—not a promise that code never reaches Cursor infrastructure.
What Privacy Mode changes
Cursor’s Data Use & Privacy Overview, dated September 3, 2026, says that when Privacy Mode is enabled, Customer Data is not used by Cursor for training and Cursor maintains zero-data-retention (ZDR) agreements with covered providers. Cursor says the temporary file cache is not training data under Privacy Mode.
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ZDR is not an absolute no-retention guarantee in every circumstance. Cursor says it and providers may use risk classifiers, and data that triggers abuse detectors may be stored for investigation and deleted under applicable retention policies. Some models also have provider retention terms that fall outside standard ZDR coverage; see the model-specific section below.
With Privacy Mode off, Cursor says it may use and store codebase data, prompts, editor actions, code snippets, and other code-related data and actions to improve AI features and train its models. Some inference providers may temporarily access and store inputs and outputs to improve inference performance; Cursor says this data is deleted after use. Review the current Data Use & Privacy Overview for the policy that applies to your account.
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How to turn on Privacy Mode
- Open Cursor Settings. The documented shortcuts are Cmd Ctrl + Shift + J on Mac and Ctrl + Shift + J on Windows or Linux.
- Select General.
- Turn on Privacy Mode.
These are Cursor’s currently documented labels and steps; they may change as the interface evolves. Cursor says Privacy Mode is enabled by default for Enterprise teams. Team and Enterprise administrators can enforce it so members cannot switch it off. Cursor’s team security documentation describes the administrative controls.
Important differences by model and setup
| How you use Cursor | What to know about data handling |
|---|---|
| Privacy Mode on, covered model | Cursor says Customer Data is not used for training and covered providers are subject to ZDR commitments. Abuse-detection investigations may still involve retention under applicable policies. Source: Cursor Data Use & Privacy Overview. |
| Privacy Mode off | Cursor says it may use and store code-related data and actions to improve AI features and train its models. Some providers may temporarily store inputs and outputs for inference improvement. Source: Cursor Data Use & Privacy Overview. |
| Personal API key (BYOK) | Requests still pass through Cursor’s backend. Retention is governed by the user’s agreement with the model provider rather than Cursor’s ZDR commitments. Source: Cursor security documentation. |
| Model with provider retention | Some models fall outside Cursor’s standard ZDR agreements and require separate consideration or approval. Source: Cursor governance documentation. |
| Cloud Agent | Cursor says encrypted repository copies are stored temporarily while agents run and deleted after completion. This is a distinct storage pattern from an ordinary foreground AI request. Source: Cursor governance documentation. |
Models with retention exceptions
Cursor’s governance documentation currently names Claude Fable 5.1 and Claude Fable 5 as models for which Anthropic stores inputs and outputs for automatic and human harm-prevention review. Cursor says that retained data is not used for training or product improvement. For Enterprise customers and customers with Privacy Mode enabled, requests to these models fail until the retention policy is approved from the dashboard; opting in applies to the whole team. Model availability and terms can change, so check Cursor’s current model and governance documentation before enabling a model for sensitive work.
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Personal API keys
Using your own provider key changes whose provider agreement governs retention; it does not route the request around Cursor. If you use BYOK for confidential code, review both Cursor’s data-use terms and the provider’s applicable retention terms. Cursor’s hardening guidance recommends organizations consider restricting personal API keys. Cursor security documentation explains this distinction.
Cloud Agents need a separate privacy review
Cloud Agents need repository access over time to make changes. Cursor says encrypted copies of repositories are stored temporarily while an agent runs and deleted after completion. If your organization prohibits code storage, Cursor’s governance guidance says not to enable Cloud Agents.
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Agents can also run commands autonomously. Cursor’s security overview warns that prompt injection can create a code-exfiltration risk. Treat agent permissions and repository access as a separate risk decision from enabling Privacy Mode for normal editor requests.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Other controls and what they do not guarantee
Use .cursorignore as an additional filter
Cursor describes .cursorignore as a best-effort way to keep selected files and directories from being sent to Cursor servers and included in AI requests. It is an extra exclusion measure, not a guarantee that sensitive information cannot be transmitted. Check the current security overview and test your project’s configuration before relying on it.
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Set organization-wide controls
For teams, Cursor’s hardening guidance recommends enforcing Privacy Mode organization-wide, considering restrictions on personal API keys, and controlling which models users can access. These controls address different paths: a Privacy Mode policy does not by itself govern a user’s provider agreement or make every model and feature equivalent.
Check vendors and deletion guidance
Cursor’s Trust Center is the live reference for subprocessors and security information. Because the list changes, organizations reviewing vendors should consult it directly rather than rely on a static list.
Cursor’s security page has stated that account deletion is available from Settings and that complete data removal is guaranteed within 30 days because backups may persist for up to 30 days. As that timeline is stated on an older security page, confirm the current deletion instructions and retention terms before treating it as current policy. Cursor security overview.
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