Cursor
An AI code editor built on VS Code. It indexes your codebase so it can suggest completions, make edits across many files, and run agent-style tasks from plain-language instructions, with cloud agents you can also start from the web, a phone or the command line.
● Use Cases
- →Writing new features from plain-language instructions
- →Refactoring code across many files
- →Explaining an unfamiliar codebase
- →Generating and fixing tests
- →Debugging errors with codebase context
● Tags
● Listed In
About Cursor
What is Cursor?
An AI code editor built on VS Code. It indexes your codebase so it can suggest completions, make edits across many files, and run agent-style tasks from plain-language instructions, with cloud agents you can also start from the web, a phone or the command line. Cursor is an AI-native integrated development environment that uses large language models to accelerate software development through inline code suggestions, automated refactoring, and intelligent debugging.
Cursor suits Australian development teams that already use VS Code, because existing extensions and settings carry over. Cursor has been owned by SpaceX since August 2026, so re-read its current terms and data handling before a new rollout. On client or regulated code, review privacy mode and your client contracts, as some agreements restrict sending source code to third-party AI services. Keep secrets such as API keys out of indexed files, and make human code review a standing rule.
How Australian Businesses Use Cursor
Development teams across Australia use AI coding IDEs to write boilerplate faster, refactor legacy code, generate unit tests, and understand unfamiliar codebases. Generated code still needs the same review and testing as hand-written code.
Key Features
- ✓Agent mode that plans and applies changes across multiple files
- ✓Tab completion that predicts multi-line edits from recent changes
- ✓Codebase indexing so chat answers reference your own files
- ✓Cloud agents that run tasks in remote environments and open pull requests
- ✓Bugbot review comments on GitHub pull requests
- ✓Rules files that store project conventions for the AI to follow
Best For
- →Professional developers who already work in VS Code
- →Startups shipping product quickly with small engineering teams
- →Engineering leaders piloting agentic coding with privacy mode enforced
Pros & Cons of Cursor
✓ Strengths
- +Edits across multiple files from one instruction
- +Works with most VS Code extensions and settings
- +Indexes the codebase, so suggestions fit your project
- +Lets you choose between several AI models
- +Privacy mode for teams with stricter code-handling rules
⚠ Limitations
- –Heavy use needs a paid plan
- –Full editing still needs the desktop app; web and mobile run agents only
- –Large multi-file edits still need careful review
- –Very large monorepos can be slower to index
Pricing
A free Hobby tier with limited agent use, paid individual tiers (Pro, Pro+ and Ultra) that now include generous limits for xAI's Grok models, and Teams and Enterprise plans that add admin controls, centralised billing and enforced privacy mode. Usage beyond the included amount is billed on demand, so monitor it in the first month. Check cursor.com/pricing for current rates.
Details checked against the vendor's website in October 2026. Pricing changes often, so confirm current plans at cursor.com.
Data Residency & Privacy in Australia
Cursor's enterprise documentation lists US-only data residency for enterprise customers, with limited EU inference on request and broader EU and APAC support still in development, so there is no Australian region. Privacy mode, which stops code being stored or used for training, is on by default only for Enterprise teams; other users must switch it on. Some models need provider retention and require admin approval.
Need AI that keeps client data onshore? See private AI hosted in Australia.
Integrations & Compatibility
Cursor integrates with the tools and platforms your team already uses:
Getting Started with Cursor in Australia
Cursor is available directly at cursor.com. Install the IDE or extension, connect it to your codebase, and begin with autocomplete enabled. Choose the underlying model where the tool allows it (most offer OpenAI, Anthropic and Google models, or their own) and set up project-specific context files for the best results.
Outside help is most useful when the tool has to connect to existing systems, handle personal information, or be rolled out to a whole team. AI Lab Australia works with businesses across Sydney, Melbourne, Brisbane, Perth and Adelaide on that setup.
Alternatives to Cursor
If Cursor is not the right fit for your workflow, these tools serve a similar purpose and are worth evaluating:
Compare Cursor
Frequently Asked Questions About Cursor
Who owns Cursor now?
Cursor's maker, Anysphere, was acquired by SpaceX in an all-stock deal that closed in August 2026, after SpaceX had merged with xAI earlier in the year. The product, website and plans continue under the Cursor name, but review updated terms, subprocessors and model options before renewing an enterprise agreement.
Does Cursor send our code overseas?
Yes. Requests are processed on overseas infrastructure, mainly in the US, and Cursor does not offer an Australian region. With privacy mode enabled, code is processed transiently and not retained for training. Check client contracts and any government security requirements before using it on code that must stay onshore.
Is Cursor free?
The Hobby plan is free and includes limited agent requests and completions, which is enough to evaluate it. Professional use generally needs a paid plan, and heavy agent use can incur on-demand charges, so set spending limits in the team dashboard from day one.
Can Cursor be used on Australian government code?
Only after a careful assessment. Agencies working under the Protective Security Policy Framework and the Information Security Manual should check data handling, hosting location and the vendor's ownership against their requirements. Many will need an onshore or self-hosted alternative for classified or sensitive repositories.
Ready to Implement Cursor?
AI Lab Australia helps Australian businesses choose, set up and connect tools like Cursor to the systems they already run, with privacy and data handling sorted before rollout.