Claude Code is Anthropic's coding agent for repository-scale engineering work. It reads files, edits code, runs commands, and coordinates subagents from the terminal, supported IDEs, the Claude desktop app, or a browser. Its strongest fit is a Claude-centered workflow that needs configurable permissions, persistent project instructions, and integrations with development infrastructure.
Cursor is a VS Code-based editor that combines tab completion, inline edits, repository-aware agents, and cloud agents in one interface. Its maker, Anysphere, was acquired by SpaceXAI (formerly xAI) in June 2026, and Grok models now sit alongside Cursor's own Composer models in every paid plan. It is the strongest fit here for developers who want AI inside a graphical editor rather than a terminal. The tradeoff is a complicated usage model: cost depends on the plan, the model, and two separate usage pools.