Cursor API Key Management Skill

Cursor API Key Management

Configure Bring Your Own Key (BYOK) for AI model providers in Cursor. BYOK lets you use your own API keys to bypass Cursor's monthly quota, pay per token directly, and access models not included in Cursor's subscription.

Supported Providers

| Provider | Key Format | Models Available | |----------|-----------|-----------------| | OpenAI | sk-proj-... or sk-... | GPT-4o, GPT-4o-mini, o1, o3, GPT-5 | | Anthropic | sk-ant-api03-... | Claude Sonnet, Claude Opus, Claude Haiku | | Google | AIzaSy... | Gemini 2.5 Pro, Gemini Flash | | Azure OpenAI | Azure portal key | Any deployed Azure OpenAI model | | AWS Bedrock | IAM credentials | Claude, Titan, Llama models | | OpenAI-compatible | Varies | Ollama, LM Studio, Together AI, etc. |

Configuration Steps

OpenAI

Go to platform.openai.com/api-keys
Create a new API key (project-scoped recommended)
In Cursor: Cursor Settings > Models > check Use own API key
Paste key in the OpenAI API Key field
Select model from dropdown (e.g., gpt-4o)

Anthropic

Go to console.anthropic.com/settings/keys
Create a new API key
In Cursor: Cursor Settings > Models > check Use own API key
Paste key in the Anthropic API Key field
Select Claude model from dropdown

Google (Gemini)

Go to aistudio.google.com/apikey
Create API key
In Cursor: Cursor Settings > Models > check Use own API key
Paste key in the Google API Key field

Azure OpenAI

Azure requires additional configuration beyond a simple API key:

In Azure Portal: create an Azure OpenAI resource
Deploy your desired model (e.g., gpt-4o)
Note the Endpoint URL and API Key from the resource
In Cursor: Cursor Settings > Models:

Azure Configuration:
  API Key:        xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
  Endpoint:       https://your-instance.openai.azure.com
  Deployment:     your-gpt4o-deployment-name
  API Version:    2024-10-21

Custom OpenAI-Compatible Endpoints

For self-hosted models (Ollama, vLLM) or third-party providers:

Cursor Settings > Models > Add Model
Model name: e.g., llama-3.1-70b
Check Override OpenAI Base URL
Enter base URL:

Ollama:        http://localhost:11434/v1
LM Studio:    http://localhost:1234/v1
Together AI:  https://api.together.xyz/v1

Enter API key if required by the provider
The model appears in the Chat/Composer model dropdown

What BYOK Covers (and What It Does Not)

BYOK key used:                    Cursor model (always):
┌──────────────────────┐         ┌──────────────────────┐
│  Chat (Cmd+L)        │         │  Tab Completion      │
│  Composer (Cmd+I)    │         │  Apply from Chat     │
│  Agent Mode          │         │  (diff application)  │
│  Inline Edit (Cmd+K) │         │                      │
└──────────────────────┘         └──────────────────────┘

Tab Completion and Apply always use Cursor's proprietary models. You cannot route these through your own API key.

Cost Management

Monitoring Usage

With BYOK, you pay the provider directly. Monitor costs at:

OpenAI: platform.openai.com/usage
Anthropic: console.anthropic.com/settings/billing
Azure: Azure Cost Management portal

Setting Spending Limits

Set monthly spending limits at the provider level:

OpenAI: Settings > Limits > Set monthly budget
Anthropic: Settings > Limits > Set spending limit
Azure: Create budget alerts in Azure Cost Management

Cost-Saving Strategies

Use Auto mode: Cursor selects cheaper models for simple tasks
Default to Sonnet/GPT-4o: Reserve Opus/o1 for hard problems
Shorter context: Use @Files not @Codebase when you know the location
Fewer round-trips: Write detailed prompts to reduce back-and-forth

Approximate Token Costs (as of early 2026)

| Model | Input (per 1M tokens) | Output (per 1M tokens) | |-------|----------------------|----------------------| | GPT-4o | $2.50 | $10.00 | | GPT-4o-mini | $0.15 | $0.60 | | Claude Sonnet | $3.00 | $15.00 | | Claude Opus | $15.00 | $75.00 | | o1 | $15.00 | $60.00 |

A typical Composer session generating multi-file code uses 5K-20K tokens.

Security Best Practices

Key Storage

Cursor stores API keys locally in its settings database:

macOS: ~/Library/Application Support/Cursor/
Linux: ~/.config/Cursor/
Windows: %APPDATA%\Cursor\

Keys are stored in the local Cursor configuration, not in project files. They do not sync between machines.

Rotation

Generate a new key at the provider
Update the key in Cursor Settings > Models
Revoke the old key at the provider
Verify Chat/Composer work with the new key

Team Key Management

For teams using BYOK:

Individual keys: Each developer uses their own key. Simplest setup, hardest to audit.
Shared project key: Create a project-scoped key at the provider. Share via secure channel. Track usage per project.
Azure gateway: Route all requests through a central Azure OpenAI deployment. Full audit logging, spending controls, model governance.

Troubleshooting

| Error | Cause | Fix | |-------|-------|-----| | 401 Unauthorized | Invalid or expired API key | Regenerate key at provider | | 429 Rate Limited | Too many requests | Wait, or upgrade provider plan | | 403 Forbidden | Key lacks model access | Enable model access at provider | | Model not appearing | Key not saved or wrong provider | Re-enter key in Cursor Settings | | Azure connection refused | Wrong endpoint or API version | Verify endpoint URL and version | | Slow responses with BYOK | Provider rate limits apply | Check provider dashboard |

Enterprise Considerations

Compliance: BYOK routes requests directly to the provider, bypassing Cursor's infrastructure. Verify this meets your data governance requirements.
Azure private endpoints: Enterprise Azure deployments can use private endpoints for network-level isolation
Key rotation policy: Implement quarterly key rotation as standard practice
SSO + BYOK: Team admins can configure shared BYOK keys via the admin dashboard (Enterprise plan)

Agent Skills: Cursor API Key Management

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