What is Cursor?

Cursor is an AI-powered code editor designed to enhance software development by integrating AI assistance directly into the coding workflow.

It is essentially a fork of Visual Studio Code (VS Code) but optimized with built-in AI capabilities.

Key features of Cursor:

  1. AI Code Completion & Suggestions

     Cursor uses advanced AI models (like GPT-4, GPT-4o) to provide context-aware code suggestions, helping developers write code faster and with fewer errors.
  2. Natural Language to Code

     You can describe what you want in plain English, and Cursor will generate the corresponding code.
  3. Inline AI Chat

     Cursor includes an embedded chat feature where developers can ask questions, debug, or get explanations about code without leaving the editor.
  4. Code Refactoring & Review

     AI can help refactor code, optimize it, and even review code snippets for potential issues.
  5. Search and Understanding

     Enhanced search capabilities using natural language make it easy to find code, functions, or understand complex codebases.
  6. Terminal & Git Integration

     Since it’s based on VS Code, Cursor also supports terminal operations, version control, extensions, and other familiar features.

Why developers like Cursor:

  • Saves time on writing and debugging.
  • Lowers the barrier for understanding unfamiliar code.
  • Accelerates prototyping.
  • Seamless VS Code-like experience with enhanced AI capabilities.

How does Cursor compare to Copilot or other AI coding tools?

Here’s a clear comparison between Cursor, GitHub Copilot, and other AI coding tools like Tabnine and Codeium:

FeatureCursorGitHub CopilotTabnineCodeium
Base ModelGPT-4 / GPT-4o / Anthropic (Claude)Codex (based on GPT-4), GPT-4 Turbo (in Labs)Proprietary (based on multiple models)Proprietary (Open models + custom tuning)
Editor IntegrationCursor Editor (VS Code fork)VS Code, JetBrains, etc.VS Code, JetBrains, etc.VS Code, JetBrains, etc.
AI Chat (in-editor)Fully integrated & context awareCopilot Chat (Labs, Beta)Limited (some beta features)Integrated (similar to Copilot Chat)
Natural Language to CodeYes (very strong)YesYesYes
Code Refactoring AssistanceAdvanced (inline + chat guided)Limited (experimental in Labs)Limited (mostly completions)Medium (inline & chat support)
Codebase Search (AI-powered)Yes (semantic & natural language)NoNoBeta
Self-hosting / Privacy focusEnterprise options (coming)Enterprise (Copilot for Business)Yes (self-hosting possible)Yes (self-hosting possible)
Pricing (as of 2024)Paid (freemium options)Paid (freemium limited)Freemium / PaidFreemium / Paid

Key Takeaways:

  • Cursor is more than code completion; it’s designed to be a full AI-first IDE experience, offering deeper understanding of codebases, refactoring, and contextual code chat.
  • Copilot is excellent for inline suggestions and code completions, with Copilot Chat still maturing.
  • Tabnine and Codeium are strong alternatives for completion, often focusing on privacy and speed, but less strong in AI chat and code reasoning features.
  • Cursor’s killer feature is its semantic codebase search and in-depth code understanding, which others still lack.

Here is a sample use case where Cursor might be better suited than Copilot?

Here’s a realistic example where Cursor outperforms Copilot and others:

Scenario:

You join a large unfamiliar codebase and need to:

  1. Understand what a function does.
  2. Find all parts of the code where a business rule (e.g., “calculateDiscount”) is used.
  3. Refactor the logic safely.

Using 

GitHub Copilot:

  • You can ask Copilot Chat (in Labs) to explain code, but it works line by line or file by file.
  • No codebase-wide search using natural language.
  • Refactoring requires you to do it manually, Copilot might assist with completions, but it’s up to you to ensure nothing breaks.

Using Cursor:

  1. AI Chat in Context:
    • You highlight a function or class.
    • Ask directly in the editor: “Explain what this function does and its side effects.”
    • Cursor provides a context-aware explanation, knowing the surrounding files and usage patterns.
  2. AI Semantic Search:
    • You can ask the AI to find ‘where do we apply discount logic for premium users’.
    • Cursor will search across the codebase using natural language, not relying on exact string matches.
  3. AI-Assisted Refactoring:
    • You can select a block of code and tell Cursor to refactor it into a separate service.
    • Cursor suggests the refactored code, changes function signatures, and even finds where to update the calls.

Why Cursor Wins Here:

  • Deep understanding of code context and codebase-wide reasoning.
  • Semantic search with natural language, not just text search.
  • AI actively supports large-scale refactors safely, while Copilot focuses on small, inline suggestions.

Here is a workflow example (step-by-step) on how Cursor does this inside the editor

Here’s a step-by-step Cursor AI workflow example inside the editor:

Example Task:

You want to refactor the discount calculation logic across the codebase and ensure all usages are updated.

Cursor AI Workflow:

Step 1: 

Understand the existing logic

  • Highlight the function code (calculateDiscount).
  • Right-click → “Ask AI” → “Explain this code”.
  • Cursor provides a detailed explanation, including parameters, side effects, and dependencies.

Step 2: 

Find all usages (semantic search)

  • Open the AI-powered Search bar (CMD + K).
  • Enter: “Where is the discount logic applied for premium customers?”.
  • Cursor returns relevant functions, classes, and files (even if they don’t explicitly mention calculateDiscount by name).

Step 3: 

Refactor the logic

  • Highlight the calculateDiscount block.
  • Ask AI → “Refactor this into a separate DiscountService class.”
  • Cursor generates the refactored service code, creates the file, and suggests updated calls in the existing files.

Step 4: 

Validate changes

  • Use AI chat in Cursor:

     “Have I missed any discount logic in the checkout flow?”.
  • Cursor analyzes the codebase context and suggests any missing areas.

Step 5: 

Code Review (AI-assisted)

  • Ask AI to review the refactored code.
  • Cursor gives feedback on clean code, patterns, and potential edge cases.

Key differentiators vs Copilot:

  • Cursor AI works at the project level, not just file level.
  • Semantic understanding of the codebase.
  • Context-aware refactoring with automatic suggestions for related changes.
  • AI assists in spotting potential missed cases.
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