What is Cursor?
Cursor is the AI-native code editor (VS Code fork) that has redefined how developers work with AI. With Composer 2 (launched March 19, 2026), Automations, cloud agents, and subagent capabilities, it offers the most comprehensive AI coding experience. The credit-based pricing (6 tiers from free Hobby to $200/mo Ultra) gives flexibility, and Auto mode provides unlimited AI assistance on the Pro plan.
Key Features
Pros & Cons
Pros
- Most advanced AI coding experience available
- Composer 2 handles complex multi-file refactors
- Auto mode: unlimited AI with smart model routing
- Familiar VS Code interface, all extensions work
- Free Hobby plan for trying it out
Cons
- Credit system can be confusing (credit pool vs requests)
- Ultra plan at $200/mo is expensive
- Large codebases can slow down indexing
- Background agents still experimental
GDPR and DACH Readiness
- EU data residency available
- Public Data Processing Addendum
- EUR billing with VAT-ID support
Notes
Pro-Tier ohne EU-Residency. Enterprise bietet Zero Data Retention mit OpenAI/Anthropic, aber keine EU-Datenresidenz.
Assessment based on vendor documents reviewed 19 April 2026. Does not replace legal counsel.
Pricing
freemium model
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