Cursor AI Vendor Risk Profile
AI-native code editor forked from VS Code. Provides inline code completion, multi-file editing, and agentic coding workflows using Claude, GPT, and Gemini models with deep codebase context.
Risk overview
Risk score: 42/100
Risk tier: Elevated
Safety rating: 58/100 (higher is better)
Lower risk scores indicate lower assessed risk.
Last verified: Apr 19, 2026 Aging
Risk dimensions
| Dimension | Risk score |
|---|---|
| Data Handling | 42/100 |
| IP Exposure | 40/100 |
| Jurisdiction | 13/100 |
| Security | 44/100 |
| Regulatory Compliance | 60/100 |
| Transparency | 80/100 |
| Business Stability | 51/100 |
| Dependency Chain | 35/100 |
| Agent Governance | Not assessed |
Analyst summary
Rating: Acceptable
Cursor (Anysphere) is a fast-moving AI-native code editor with strong privacy-mode defaults on Business plans and zero-retention contracts with upstream model providers. Its small company size and dependency on third-party LLM providers are the primary risk factors.
Bottom line: Strong choice for dev teams that value velocity and privacy-mode defaults; not yet a fit for heavily regulated buyers.
Strengths
- Privacy Mode (default on Business) means no code retention by Cursor or model providers
- SOC 2 Type II certified with GDPR DPA
- Strong developer experience and rapid feature velocity
- Routes to multiple frontier models (OpenAI, Anthropic, Google) with unified billing
Concerns
- Small company size means long-term durability is not yet proven
- All inference happens through upstream LLM providers, so Cursor inherits those risks
- Limited enterprise feature set compared to GitHub Copilot Enterprise
- No FedRAMP, no HIPAA BAA disclosed
Best for
- Small-to-midsize dev teams wanting a modern AI-native IDE
- Startups and labs already using OpenAI or Anthropic and wanting privacy-respecting code tooling
- Teams prioritizing developer experience over maximum enterprise controls
Avoid if
- You are a regulated enterprise requiring FedRAMP or HIPAA BAA on developer tools
- You need a coding assistant from a vendor with 10+ year durability guarantees
- You require full indemnification on generated code (Cursor does not offer this)
Citations
- Data Handling — Data Retention Period
With Privacy Mode enabled, code is not stored by Cursor and is only held transiently by model providers during inference.
- Data Handling — Third Party Data Sharing
Cursor routes requests to model providers including OpenAI, Anthropic, and Google. In Privacy Mode, providers are contractually bound to zero-retention agreements.
- Data Handling — Trains On User Data
If you enable Privacy Mode (default for Business plans), none of your code is used to train models or retained by Cursor or its subprocessors.
- Ip Profiles — User Owns Outputs
You retain all right, title, and interest in your code and any Output generated through your use of the Services.
- Jurisdiction Profiles — Incorporation Country
Cursor is developed by Anysphere Inc., a Delaware corporation headquartered in San Francisco.
- Security Compliance — Gdpr Compliant
Cursor provides a GDPR-compliant Data Processing Addendum for Business customers and operates as a data processor.
- Security Compliance — Soc2 Type2
Cursor has achieved SOC 2 Type II compliance, with report available under NDA for Business customers.