Cursor rolled out Background Indexing 2.0 with incremental AST optimization and lightweight embeddings for 10M+ line codebases.

Key Takeaways

  • Incremental AST indexing recomputes only changed nodes during Git branch switches, saving 75% CPU
  • Multi-file codebase reference accuracy rises to 94.8%, eliminating cross-module agent hallucinations
  • Supports local offline embedding mode keeping sensitive enterprise code 100% on-device