Vercel AI Updates: September 4, 2026

1. Cursor Cloud Agents Can Run Inside Vercel Sandbox

Vercel. Cursor Cloud Agents can now execute in Vercel Sandbox instead of Cursor’s own infrastructure, cloning repositories, editing files, and running tests inside isolated Firecracker microVMs. Vercel Functions and Vercel Workflow provide the control plane, which claims queued agent requests, provisions workers, monitors sessions, and cleans up automatically, so there are no persistent VMs to keep warm. Each request gets its own microVM with short-lived, user-scoped credentials, and the workflow layer supplies durable retries. The integration requires a Cursor Enterprise plan, and Vercel published a reference implementation and self-hosted deployment guide. Source