The shift toward AI-assisted development has created a massive dilemma for software engineers. Tools like Cursor AI offer incredible productivity gains through features like "Composer" and codebase indexing, but they come with a hefty privacy cost. For enterprise developers under strict NDAs, or students operating on zero budget, sending proprietary code to Cursor's cloud (and subsequently to Anthropic or OpenAI) is a non-starter. The solution lies in decoupling Cursor’s excellent UI from its cloud backend. By leveraging Ollama and high-performance local models like Qwen 2.5 Coder or DeepSeek , you can achieve a "local-first" development environment. This setup ensures your code never leaves your machine while avoiding the $20/month subscription fee. This guide provides a rigorous, step-by-step configuration to route Cursor's inference engine to a local endpoint, along with a root cause analysis of why this integration often fails for beginners. The ...
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