VS Code suits people who want a free, open source editor and like choosing their own AI models and extensions. Cursor suits people who want an AI coding agent at the centre of everything, with cloud agents, automations and code review in one place. If you're happy assembling your own setup, start with VS Code; if you want the agent to drive, try Cursor.
I read Cursor's home and plans pages and Microsoft's Visual Studio Code site for this, so everything below comes from the two makers themselves. Cursor's plans page holds a surprise, and that's the detail I'd check first.
Cursor and VS Code at a glance
| Cursor | VS Code | |
|---|---|---|
| How it describes itself | Your coding agent for building ambitious software | The open source AI code editor |
| Free plan | Yes, with limited AI usage, agent and chat requests | Yes, a free download |
| Open source | Not stated on the pages I read | Yes |
| AI models | Grok models only on the Plus plan; third-party models on higher plans, charged by usage | Models and agent harnesses you pick |
| Ways to use it | Desktop app, CLI, cloud agents, mobile | Desktop for macOS, Windows and Linux, plus a web version |
| Extras | Automations, code hosting, AI code reviews | Extensions and MCP support |
What Cursor is now
Cursor calls itself your coding agent rather than an editor, and its home page shows why: there's Cursor Desktop, a Cursor CLI, cloud agents, automations, a mobile app and a review tool, all built around an agent that plans and builds for you.
The surprise is on the plans page. Cursor's plans now sit alongside X features such as posting and following, and the Plus plan is described as a shared AI usage pool where only Grok models are available. Third-party models only appear on the higher plans, and Cursor says they're charged separately by usage. If you came to Cursor for a particular Claude or OpenAI model, read that page before you commit.
What VS Code gives you
Microsoft now pitches Visual Studio Code as the open source AI code editor and your home for multi-agent development. Its features menu lists agents, agent customisation, and a section on models and agent harnesses, so you can bring the AI you already use rather than take the one the editor picks.
It runs on macOS, Windows and Linux, with a web version and an Insiders edition for people who want new features early. Microsoft's FAQ says VS Code is free for private or commercial use, extensions have their own section on the site, and MCP support sits right in the menu for connecting AI tools to your own data and services.
The model question that decides it
This is where the two have drifted apart. Cursor's own page says its entry plan is Grok only, while VS Code's site is built around picking your own models and harnesses. If the model you rely on matters to you, that one line on Cursor's plans page should shape your choice.
Put simply, the AI setup is where they part ways: in Cursor it's bundled into the plan you choose, while in VS Code it's yours to arrange, model by model and extension by extension.
Who each editor suits
VS Code suits developers, students and small teams who want a free, open source base and full control over extensions and AI models. Cursor suits people who'd rather hand bigger tasks to an agent, run work in the cloud and have code review built in. If you're newer to coding, these prompts that speed up coding work help in either editor, and if you'd rather skip code altogether, here's where to build an AI agent without coding.
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My advice on Cursor or VS Code
Install VS Code first, because it's free, open source and won't lock you into one model. Add the AI assistant you already trust and use it on a real project for a week. If you keep wishing an agent would take whole tasks off your hands, then try Cursor's free plan, but read its plans page so you know which models you'll get before you move your work across.
Do you make coding tools or AI coding agents? Tool makers can ask to be considered for a featured place in comparisons like this one.
Frequently asked questions
Is Cursor a code editor or an agent?
Cursor's home page describes it as your coding agent for building ambitious software, with a desktop app, a CLI and cloud agents.
Is VS Code free?
Yes. Microsoft's VS Code FAQ says it's free for private or commercial use, and it downloads for macOS, Windows and Linux.
Does Cursor have a free plan?
Yes. Cursor's plans page lists a free plan with limited AI usage and a limited number of agent and chat requests.
Which AI models does Cursor use?
Cursor's plans page says only Grok models are available on the Plus plan, with third-party models on higher plans charged separately by usage.
Can I use my own AI models in VS Code?
Yes. VS Code's site has a section on models and agent harnesses, so you can choose the AI you work with.
