Continue vs Cursor

Both Continue and Cursor are AI coding tools with a freemium pricing model and do not support self-hosting. The most significant difference between Continue and Cursor lies in their fundamental approach to integration and source model. Continue is an open-source extension designed to augment your existing VSCode or JetBrains environment, offering deep integration and the flexibility to run local models. Cursor, conversely, is a closed-source, standalone IDE built from the ground up with AI at its core, providing a fully integrated development experience. Continue appeals to developers who value transparency, customisation, and the ability to keep their code and models entirely local. Its pricing includes a usage-based option, which can be cost-effective for individual use, though it lacks a free tier. Cursor, on the other hand, offers a free tier, making it accessible for initial exploration, and provides a more opinionated, AI-first environment with features like agent mode. Its tiered monthly subscriptions offer predictable costs for those who commit to its dedicated IDE. Developers committed to their current IDE and seeking an open-source, privacy-focused AI assistant should choose Continue. Cursor is the right choice for those ready to embrace a new, dedicated AI-native IDE with advanced features and a clear subscription model.