Cursor replaces VS Code as your editor, letting you write, debug, and refactor code by talking to an AI model running in the same window. It sits in the narrowing gap between generic chatbots and local-only tooling—you get context-aware suggestions without leaving your workflow. The core differentiator is bidirectional integration: the AI sees your codebase and cursor position; you see diffs before accepting changes. Pricing starts free with limited requests; paid tiers run $20/month (Pro) or $40/month (Business). The honest friction: you're betting your primary development tool on a third-party company's uptime and API stability, and pricing compounds quickly for teams.