To provide its features, Cursor makes AI requests to our server. This happens for many different reasons. For example, we send AI requests when you ask questions in chat, we send AI requests on every keystroke so that Cursor Tab can make suggestions for you, and we may also send AI requests in the background for building up context or looking for bugs to show you.

Well, naturally. How else would it work?

The "every keystroke" case is for tab to complete and @mention, which is where you need that.