Lesson 1 10 min

Welcome to Cursor AI

Understand what Cursor AI is, why it's different from VS Code with Copilot, how pricing works, and what you'll learn in this course.

The Tool That Changed How Developers Code

Over a million developers switched to Cursor in its first 16 months. More than half of Fortune 500 companies — including Nvidia, Uber, and Adobe — adopted it for their engineering teams. And 360,000 people pay for it monthly.

That’s unusual for a code editor. VS Code took years to reach that kind of adoption. So what’s going on?

Here’s the short version: Cursor isn’t VS Code with AI sprinkled on top. It’s an AI-first editor that happens to look like VS Code. The difference sounds subtle, but it changes everything about how you write code.

What Cursor Actually Is

Cursor is a code editor built on VS Code’s open-source foundation. Your extensions work. Your shortcuts work. Your themes work. If you’ve used VS Code, Cursor feels immediately familiar.

But under the surface, Cursor added capabilities that VS Code can’t replicate with plugins:

FeatureVS Code + CopilotCursor
Code suggestionsInline completionsInline + multi-line predictive edits
ChatSidebar Q&AChat that reads your entire codebase
File editingManualAI edits multiple files simultaneously
TerminalManual commandsAI runs commands, fixes errors automatically
ContextCurrent fileEntire project via semantic search
RulesNoneProject-specific AI behavior rules

Copilot suggests the next line. Cursor understands your project and can rewrite entire features across multiple files while running tests to verify the changes work.

What You’ll Learn

By the end of this course, you’ll know how to:

  • Navigate Cursor’s interface and set it up for your workflow
  • Use Tab completion that predicts not just words, but your next edit
  • Edit code inline with Cmd+K — describe what you want, get a diff to review
  • Chat with your codebase using @ symbols for precise context
  • Let Agent mode work autonomously — editing files, running commands, fixing errors
  • Write rules files that make Cursor follow your project’s coding standards
  • Use advanced features like Background Agents, BugBot, and MCP servers

What to Expect

Each lesson takes 10-20 minutes. The course follows a building-block structure:

LessonWhat You’ll LearnBuilds On
1 (this one)What Cursor is, pricing, setup
2Interface tour, VS Code migrationLesson 1
3Tab completion, inline editing (Cmd+K)Lesson 2
4Chat (Cmd+L), @ symbols, context layersLesson 3
5Agent mode, checkpoints, Plan modeLesson 4
6Rules files, Notepads, custom docs, MCPLesson 5
7Background Agents, BugBot, MemoriesLesson 6
8Capstone: build a real project workflowAll lessons

No coding projects are required — but you’ll get more out of the course if you have Cursor open and try things as you go.

Cursor’s Pricing (2026)

Before diving in, here’s what Cursor costs:

PlanPriceWhat You Get
Hobby (Free)$02,000 completions/mo, 50 slow premium requests
Pro$20/moUnlimited Tab completions, $20 credit pool for premium models
Business$40/user/moSame AI as Pro + SAML SSO, admin controls, enforced privacy
Pro+$60/moHigher credit pool for heavy users
Ultra$200/mo20x usage, priority access to new features

The free plan is enough to complete this course and decide if Cursor fits your workflow. Students get one year of Pro free with a .edu email.

Quick Check: If Cursor is built on VS Code, why can’t VS Code just add the same AI features with extensions? Because Cursor’s AI capabilities require changes to the editor’s core — how it indexes files, processes context, and applies edits. Extensions can only add features on top of the existing editor; they can’t change how the editor fundamentally works. That’s why Cursor forked VS Code instead of building a plugin.

Key Takeaways

  • Cursor is a VS Code fork rebuilt around AI — same look, fundamentally different capabilities
  • Over 1M users and 360K paying customers in 16 months, adopted by 50%+ Fortune 500
  • Credit-based pricing: Free tier for getting started, Pro at $20/mo for serious use
  • Your VS Code extensions, themes, and settings transfer with one click
  • This course covers the full Cursor workflow from Tab completion to Background Agents

Up Next

In Lesson 2, you’ll install Cursor, import your VS Code setup, and learn the interface — where everything lives, how indexing works, and the settings that matter most.

Knowledge Check

1. What makes Cursor fundamentally different from VS Code with GitHub Copilot?

2. What pricing model does Cursor use as of 2025?

3. Which statement about Cursor's VS Code compatibility is correct?

Answer all questions to check

Complete the quiz above first

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