Cursor is a code editor built by Anysphere on top of VS Code, with AI wired into the editing experience rather than added as a sidebar. It indexes an entire codebase so prompts can reference files and functions by context instead of needing them pasted in, and its Tab autocomplete goes beyond single-line suggestions to multi-line diffs and smart rewrites.
Agent mode extends that further: it can execute terminal commands, run tests, and iterate on a task across multiple files with limited supervision, while Composer gives a more structured way to plan and review larger changes before they land. It runs locally on Windows, macOS, and Linux, imports existing VS Code extensions, and has a Privacy Mode that stops code from being sent remotely unless a developer explicitly allows it.
Cursor has become the default reference point other AI editors get compared against, reaching a reported $9 billion valuation and wide adoption at companies that would otherwise be cautious about AI tooling touching production code.