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.