Cursor moves cloud-agent tool execution onto customer machines while the agent loop and transcripts stay in its cloud

Sources: primary, discussion
Summary: Cursor states that Self-Hosted Machines moves only the execution environment, that inference and planning stay in its cloud, that tool outputs flow back to Cursor and may contain code, and that agent transcripts may be processed and stored by Cursor. Workers open an outbound HTTPS connection, and Cursor states it never initiates a connection into the customer network. Cursor states cloud agents now create more than 60 percent of the pull requests it merges internally, which is its own unaudited figure.
Why it matters: The self-hosted label covers where tools run and not where code and transcripts end up, which is the distinction a team adopting this on compliance grounds has to read the post to find.
Follow-up: Track whether Cursor documents retention for agent transcripts and tool outputs under this deployment model.