What is Cursor?
Cursor is an AI-powered code editor. It’s like VS Code, but with AI features built directly into the editor so you can chat with AI, generate code, and get suggestions while you write. It was created in 2023 and has become one of the most popular AI coding tools, reaching $500M in annual revenue and a $10B valuation by 2025.
The way it works is that Cursor understands your entire codebase. It indexes all your files so when you ask it to make changes, it knows where everything is and how different parts of your code relate to each other. You can select code and ask questions about it, or describe what you want to build and have Cursor write the code for you.
One of Cursor’s main features is Composer, which is their agentic coding model. Instead of just getting code suggestions, you can have Cursor autonomously work on tasks across multiple files. It can refactor code, add features, and make changes throughout your project while you review and guide the process.
Cursor gives you access to multiple AI models. You can choose between Claude (Anthropic), GPT-4 (OpenAI), Gemini (Google), and others depending on what you’re working on. The editor provides smart code completions, multi-line suggestions, and inline AI chat right where you’re coding.
The pricing model is $20/month for the Pro plan, which includes unlimited code completions and AI chat. There’s a free tier with limited usage. For teams and enterprises, they offer custom plans with additional features like SOC 2 compliance and custom model deployments.
In 2026, Cursor introduced a new agentic interface that makes it easier to run and manage multiple agents working in parallel. They’ve also added CLI controls, MCP management, and performance improvements for hooks.
I haven’t used Cursor myself. The closest thing I’ve used is Copilot in WebStorm. But now that terminal code assistants like Claude Code and Codex are available, I spend most of my time in the terminal rather than an IDE. The terminal-based workflow just feels faster to me at this point.