Coder has introduced Agent Relay, a self-hosted execution layer that lets enterprises run Cursor Cloud Agent tool actions inside Coder workspaces on infrastructure they control.
Each workspace can run in a customer cloud, VPC or on-premises environment. Code, secrets and internal services can therefore stay behind the organization’s own network and access policies while the agent executes tools against them.
This does not make Cursor a fully local AI stack. Cursor still handles the agent loop, including inference and planning. The important split is between where the model reasons and where the agent is allowed to act.
The integration is in private preview. For regulated teams, its value will depend on whether workspace isolation, network policy, logging and credential controls are strong enough to contain agent mistakes or prompt-injection attempts in practice.