What Is Cursor? — The AI Editor: How to Use It and How It Differs From VS Code
In February 2026, Anysphere — the company behind Cursor — crossed $2B in ARR, drawing a SaaS revenue curve in the league of OpenAI and Anthropic in just three years. This article covers how Cursor differs from VS Code by embedding AI directly into the rendering layer (sub-100ms Tab completion, 272K-token codebase index, the six core features: Tab / Inline Edit / Composer / Agent / Background Agents / Bugbot), the five concrete differences vs VS Code, side-by-side comparison with four rivals (Windsurf / Zed / Claude Code / GitHub Copilot), the Hobby-free / Pro $20 / Business $40 plan structure, and a decision guide for "who should actually switch" — fact-based as of May 2026.