The announcement says the E2B Runtime and dashboard run on one machine, and that databases, templates, and sandbox logs live on its disk. It also describes Firecracker microVM isolation and Python and JavaScript SDK access.
Mechanism: E2B packages its open-source Runtime and dashboard for deployment in the customer environment, with installation paths via Docker Compose, Terraform for GCP or AWS, or Kubernetes on a prepared KVM node. The operator runs the stack and manages its access and networking; E2B says Embed serves plain HTTP inside the network and advises keeping internal service ports private. Why now: The company frames this as a response to agent vendors serving government and regulated customers whose data must remain in their own environment. The announcement makes that deployment model available without an E2B account or license key, under Apache-2.0.
First implication: Teams can evaluate a locally operated sandbox stack for customer deployments, but assume operational responsibility rather than receiving a managed multi-machine service. Embed is single-machine; the announcement lists secrets, volumes, workload identity, and bring-your-own proxy as excluded. Evidence boundary: These are product capabilities and limitations described by E2B; the source does not independently verify security, performance, or customer adoption. First watch condition: Watch for documentation, deployment reports, or customer evidence showing how operators handle network controls and production operations beyond the one-machine setup.