10 expert Cursor Ai Assistant answers researched from official documentation. Every answer cites authoritative sources you can verify.
VS Code fork with deep AI integration (2024-2025). Key differentiators: (1) Chat with entire codebase (not just current file), (2) Multi-file edits in single request, (3) Composer mode (agentic task execution), (4) Privacy mode (no telemetry), (5) Custom model support (OpenAI, Anthropic, Azure). Pricing: $20/month Pro, free tier with limits.
Agentic coding mode (Cmd+I) that autonomously edits multiple files. User provides high-level task ('add user authentication with JWT'), Cursor: analyzes codebase, creates/modifies files, runs tests, fixes errors. Similar to Claude Code but IDE-integrated. Limitations: requires review (can introduce bugs), expensive (uses GPT-4/Claude).
Indexes project on open: embeddings of all files, enables semantic search in chat. Query: '@codebase how does auth work?' searches entire project, not just open files. Index updates on file save. Supports: TypeScript, Python, Go, Rust, Java, C++. Exclude: .cursorignore file (like .gitignore). Index stored locally (privacy mode).
Privacy mode: disable telemetry, local-only indexing, no code sent to Cursor servers (only to chosen LLM provider). SOC 2 Type II certified. Options: use self-hosted models (Azure OpenAI), disable code snippets in requests, exclude sensitive files (.cursorignore). Data retention: requests deleted after 30 days (OpenAI/Anthropic policies).
Cursor: chat-based, multi-file edits, codebase-aware, agentic mode, VS Code fork ($20/month). Copilot: autocomplete-first, inline suggestions, GitHub integration, works in multiple editors ($10/month individual, $19/month business). Cursor better for: complex refactoring, codebase exploration. Copilot better for: line-by-line coding, non-VS Code editors.
Essential shortcuts: (1) Cmd+K: inline edit (modify selection), (2) Cmd+I: Composer (multi-file task), (3) Cmd+L: open chat, (4) Cmd+Shift+L: chat with selection, (5) Tab: accept suggestion, (6) Cmd+→: accept word. Customize in Settings → Keyboard Shortcuts. Learn incrementally.
Settings → Advanced → Model: select from Openai, Anthropic, Azure OpenAI, custom API. Supports: GPT-4, GPT-4 Turbo, Claude 3 Opus/Sonnet, custom OpenAI-compatible API. Override per chat with model selector. Cost tracking: Dashboard shows token usage. Bring your own key (BYOK) option for self-managed billing.
.cursorrules file (project root or .cursor/ folder): defines project-specific AI instructions. Format: plain text rules. Example: 'Use Tailwind for styling', 'All API routes in src/api/', 'Use Zod for validation'. Cursor applies rules to all code generation. Similar to CLAUDE.md or GEMINI.md. Keep <2KB.
$20/month includes: 500 premium requests/month (GPT-4, Claude Opus), unlimited basic requests (GPT-3.5, Claude Sonnet), unlimited autocomplete. Overages: $0.04/premium request. Free tier: 50 premium requests, 200 basic requests. Teams: $40/user/month with usage pooling. Academic discount: 50% off Pro.
Worth $20/month if: (1) Frequent multi-file refactoring, (2) Large codebase exploration (>50 files), (3) Need privacy mode (sensitive code), (4) Agentic workflow appeals (Composer mode), (5) Time savings > $20/month value. Stick with Copilot ($10/month) if: autocomplete-focused, use non-VS Code editors, GitHub integration critical.