Azure GPT-5 API Key Not Working – Internal Server Error

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Hi!

I am trying to cover my Cursor token usage through my Azure account.

I have free credits there and want to use them.

Steps to Reproduce

I have set up Azure as I think is correct and it passes the test on cursor’s side (as it accepts the deployment and marks as active, which it does not do if I use e.g. the wrong name for the deployment or the wrong key).

I can see in Azure that 30ish tokens are being sent, probably for the check.

I get an error message

Expected Behavior

No error message and simple usage

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.4.5 (user setup)
VSCode Version: 1.99.3
Commit: af58d92614edb1f72bdd756615d131bf8dfa5290
Date: 2025-08-13T02:08:56.371Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Does this stop you from using Cursor

No - Cursor works, but with this issue

Same issue here.

If the problem persists, please check your internet connection or VPN, or email us at [email protected].

(Request ID: 96f4c46a-955c-413a-8a77-c008cc860e69)

I’ve also tried to change the deployment name in my azure environment to exactly match the model choices I have in cursor (“gpt-5-high”) with same upper/lower case characters in case it’s case sensitive. - Nothing.

Is there an estimation when this will be fixed? If not I might have to get back to vs code + claude code instead.

There’s no update on this or hidden trick, right? I’m dying over here… I really need this

Is there still no solution? A lot of people are waiting.

I will check with the team. Thank you for bumping the issue.

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

Hi,

I’m trying to integrate GPT-5 via the Azure AI Foundry API. I already have GPT-5 enabled on my Azure account, but for some reason the setup fails when I try to use it with Cursor.

I’ve already verified that the base URL, deployment name, and access token match exactly what is provided on Azure.

I suspect that Cursor has not yet updated support for the reasoning endpoint (/openai/responses?api-version=2025-04-01-preview) for Azure AI models, which may be why we are seeing an internal server error. However, I request the Cursor tech team to investigate this issue, since I believe it is not coming from Azure’s end. I tested the credentials manually, and they work fine. The failure only occurs within Cursor.

Additionally, I’ve noticed there is no option in Cursor to:

Set reasoning to Low, Medium, or High

Adjust verbosity levels

Create multiple GPT-5 deployments with different reasoning settings

Configure input/output token limits

View reasoning traces

Could you please let me know how I can achieve these configurations, and also help me resolve the error?

Thank you

Error on Cursor:

Request ID: 7d82af56-e5fb-4ca9-9f9f-34f1112a08f3
{“error”:“ERROR_UNSPECIFIED”,“details”:{“title”:“Internal server error.”,“detail”:“If the problem persists, please check your internet connection or VPN, or email us at [email protected].”,“additionalInfo”:{},“buttons”:,“planChoices”:},“isExpected”:false}

Steps to Reproduce

In Cursor Settings > Models, configure the Azure API by adding the Base URL, Deployment Name, and Access Key.

Add GPT-5 as the custom model name, disable all other models, and test using only the Azure model.

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.4.5 (user setup)
VSCode Version: 1.99.3
Commit: af58d92614edb1f72bdd756615d131bf8dfa5290
Date: 2025-08-13T02:08:56.371Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.27924

Does this stop you from using Cursor

Yes - Cursor is unusable

Thanks for the report. I’ve raised it with team. Tracking similar issues here: Azure GPT-5 API Key Not Working – Internal Server Error - #29 by Broqee

Hello again and again :slight_smile: any update?

Hey, when will this be resolved?

I’m pretty sure they are not solving this issue on purpose

@drako and @Broqee the team is in the process of improving this.

Hey @Jungwon423 please do not ruin this for others. We are a small team who are working hard to provide improvements and bug fixes additional to new features. We will fix this.

Hi @condor I had also suggested a few features surrounding Azure and GPT-5.
Please consider this as well and implement during the same release.

hi @drako yes we saw your feature request. As this specific task is about fixing issues the feature request will be handled separately for now. Overall fixing existing issues has priority.

Please provide me with a deadline; this has been under repair for a month now.

Hi guys, any update on this? Would also love to know by when I can expect this to be done :slight_smile:

Thanks for the support!

1 Like

Please provide me with a deadline;

1 Like

Hi @Salvador_Hernandez @user541 @Broqee @cherzog79 @dionator @yatree @SPotelickyDev @Jungwon423 and all of those impatient to use Azure GPT-5 in Cursor.

I’ve created this project for the community which allows you to do so: GitHub - gabrii/Cursor-Azure-GPT-5: A service that allows Cursor to use Azure GPT-5 deployments.

It’s not perfect, but useful until model support is further improved and buys the team some time.

I get a Request failed error. Can you look it up on Github?

Thanks for the report @Broqee ! Issue fixed on main branch, please pull and try again.

ps: Let’s try to keep the discussion on Github

@condor After many updates, there’s still no solution. Is this a joke?