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
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