Continue vs Cursor
Pricing
Continue: Free (open source), no longer maintained since June 2026
Cursor: Free tier, Pro from $20/mo (usage-based)
Description
Continue: Open-source AI assistant for VS Code and JetBrains. Cursor acquired it in June 2026 and the project is now read-only
Cursor: AI code editor (VS Code fork) that lets you talk to your codebase, autocomplete across files, and refactor with a prompt
Pros
- The final 2.0 release still installs for free from the VS Code Marketplace, Open VSX and npm
- Works with your own API keys (Anthropic, OpenAI, Gemini and others) or local models through Ollama and LM Studio
- The code stays available under the Apache 2.0 license, so anyone can fork it
- Feels like VS Code: your extensions and shortcuts just work
- Tab completions predict multi-line changes, not just single words
- Can reference your entire codebase when answering questions
Cons
- No longer maintained: no bug fixes, security patches or support for new models
- Hosted accounts and sign-in were retired after the acquisition
- Requires setup: picking a model, getting API keys, configuring the tool
- Free tier runs out fast: expect to hit the Pro paywall within a week of real use
- Sometimes confidently suggests wrong code, especially for less popular libraries
- Each plan includes a set amount of model usage, and extra usage is billed afterwards, so costs are harder to predict
Details
Continue was the “bring your own model” approach to AI coding: a free, open-source extension for VS Code and JetBrains, plus a CLI, that connected to the LLM of your choice, from cloud APIs like Claude to local models through Ollama. You got autocomplete, chat and inline editing without a subscription.
In June 2026 Cursor acquired Continue. The team shipped a final 2.0 release on 19 June 2026, retired hosted accounts and sign-in, and made the GitHub repository read-only. The extensions still install and run with your own keys, but nothing will be fixed or updated. For the same free, model-agnostic setup with active development, use Cline inside VS Code, or Aider or Claude Code in the terminal.
If you already use VS Code, Cursor is the shortest path to having AI actually understand your project. It does more than autocomplete: you can highlight code and ask “why is this breaking?” or tell it “add error handling to all API routes” and watch it edit multiple files.
The tab completions are the killer feature. They predict what you are about to type based on what you just did, and they are eerily good at continuing patterns. The free Hobby tier gives you a taste, but its Agent requests are limited and run out quickly. Pro at $20/month is where most solo devs land, with Pro+ and Ultra above it for heavy agent use. Every plan includes a set amount of model usage, and anything beyond it is billed afterwards, so keep an eye on your usage if you are doing heavy agent work. Anysphere, the company that makes Cursor, became part of SpaceX when SpaceX completed its acquisition on 14 August 2026.
Verified
