Why are AI system prompts being treated like digital gold, leaked and protected like user passwords? What’s the real difference between a system prompt and a user prompt?

A system prompt acts like a hidden constitution: it defines the AI’s behavior, personality, and constraints across all conversations. In contrast, user prompts are the dynamic, moment to moment instructions we give, ephemeral and ever changing.

System prompts are the result of extensive R&D investment. They codify competitive advantage, encapsulate proprietary business logic, and increasingly represent a company’s core intellectual property.

So it’s not surprising that system prompts have become valuable targets. We’ve already seen system prompt leaks from ChatGPT and Claude. Additionally, Cursor’s system prompt was leaked, revealing its internal instructions. And Perplexity AI’s system prompt was exposed through prompt injection techniques.

For AI companies, protecting these prompts will require not just better technical defenses but also new legal frameworks specifically addressing the theft of prompt designs.

For users, this is a reminder: AI models aren’t neutral or purely spontaneous. Every impressive output you see is shaped by a deliberately engineered system prompt, an invisible layer that’s becoming one of the most valuable assets in the AI industry.

Sources:

www.nebuly.com/blog/llm-…

www.geeky-gadgets.com/cursor-sy…

www.reddit.com/r/PromptE…

dev.to/paka/reve…