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Cursor vs. Continue: Comparing AI Code Generation tools (2025)

Cursor vs. Continue: Comparing AI Code Generation tools (2025)

January 8, 2025 (1w ago)

Written by Everett Butler

As AI-powered developer tools continue to reshape how we write code, Cursor and Continue stand out as two prominent solutions in the market. Both offer AI-powered code assistance and IDE integration, but while Cursor operates as a full VS Code fork with deep AI integration, Continue takes a more platform-agnostic approach as an open-source extension.

This comparison will help you understand the key differences and make an informed decision for your development needs.

Feature Comparison

FeatureCursorContinue
Terminal integration
Tab completion
Language agnostic
API access
Self hostable
Test generation
Real-time completions
Usage analytics
Explanations/Chat
Full codebase context
VS Code Support
JetBrains Support
NVIM Support
Models SupportedGPT-4, Claude, CustomUniversal and Custom Models
PricingFree Hobby Tier + Pro $20/mo + Business $40/user/moFree + Enterprise plans

Code Completion

Cursor

Cursor offers sophisticated code completion through its Cursor Tab feature, providing multi-line code suggestions and modifications. The system can suggest entire code blocks and even modify existing code based on context. Users receive 2,000 completions with the free tier and unlimited completions with Pro. The completion system is deeply integrated with the editor and can understand linter errors and recent changes.

Continue

Continue provides intelligent inline code completion with real-time suggestions as you type. The system includes tab completion support and status bar integration, allowing developers to easily enable or disable suggestions. Being open-source, the completion system can be customized and extended according to specific needs.

AI Chat Capabilities

Cursor

Cursor's AI chat integration is comprehensive, featuring context-aware code discussions with support for multiple AI models. The chat system preserves history, automatically includes relevant file context, and offers web search capabilities. Users can generate code blocks and instantly apply them, with a customizable chat interface.

Continue

Continue offers an integrated AI chat interface within the IDE environment, focusing on contextual code assistance without requiring window switching. The system supports follow-up questions and iterative improvements, providing real-time responses to coding queries. The chat integration is streamlined and focused on maintaining developer workflow.

Context Awareness

Cursor

Cursor employs automatic indexing of codebases for improved context understanding, using embeddings-based search for accurate code references. The system allows customizable indexing rules via .cursorignore and maintains a privacy-focused design without storing plaintext code.

Continue

Continue's context awareness is built into its core functionality, providing contextual understanding across your codebase. The system offers customizable context integration and can be configured to understand project-specific patterns and requirements, making it highly adaptable to different development environments.

Privacy and Security

Cursor

Cursor prioritizes privacy with an optional Privacy Mode that prevents code storage. The system processes sensitive information locally and maintains transparent data handling policies. No permanent storage of plaintext code occurs, and users have control over codebase indexing configurations.

Continue

As an open-source solution, Continue provides complete transparency in its code handling. Users can audit the source code for security concerns and modify it according to their needs. The open nature of the project ensures that security practices are community-reviewed and maintainable.

Pricing

Cursor

  • Hobby
    • Free for individual users
    • Pro two week trial
    • 2000 completions
    • 50 slow premium requests
  • Pro
    • $20 per month
    • Unlimited completions
    • 500 fast premium requests
    • Unlimited slow premium requests
    • 10 o1-mini uses per day
  • Business
    • $40 per user, per month
    • Enforce privacy mode org-wide
    • Centralized team billing
    • Admin dashboard with usage stats
    • SAML/OIDC SSO

Continue

  • Free Open Source
    • Free forever
    • Real-time code suggestions
    • Automated refactoring
    • Testing and debugging assistance
    • Seamless IDE integration
  • Enterprise
    • Enhanced features
    • Scalability
    • Enhanced security and privacy
    • Dedicated support
    • Collaboration tools

Conclusion

Cursor and Continue represent two distinct approaches to AI-powered development tools. Cursor offers a more integrated, full-featured experience with its VS Code fork, providing comprehensive AI capabilities and a tiered pricing model that caters to different user needs. The platform excels in its deep integration of AI features and professional-grade tools, making it particularly attractive for commercial development environments.

Continue, on the other hand, stands out with its open-source nature and broader IDE support, including JetBrains integration. Its free, unlimited access model and community-driven development make it an excellent choice for developers who value flexibility and customization, or teams working with multiple IDEs. While it may not offer some of the advanced features found in Cursor's paid tiers, its open architecture and active community support ensure continuous improvement and adaptation to developer needs.


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