Same bones, different philosophy
Cursor forked VS Code rather than building an extension because its team believed AI as a plug-in was too limited. Lex Clips explains that's how Cursor inherited VS Code's editing model and let developers keep their muscle memory. The result: migrating is nearly frictionless. Internet Made Coder and Bryan Collins both note that Cursor imports your existing settings, extensions, and GitHub login, and taps the same extension marketplace.
The philosophy splits hard from there. VS Code is the free, lightweight, extensible baseline. Cursor is the AI-first alternative for people who want AI built into the editor. Fireship's Cursor 3 coverage adds a twist: as of April 2026, Cursor claims it has been completely rewritten from scratch in Rust and is no longer a VS Code fork at all. Lex Clips, Bryan Collins, and Internet Made Coder still describe Cursor as a fork. Either way, the old VS Code editor lives inside the product, just wrapped in an agent-management layer.
Microsoft isn't in a great place to keep pushing AI programming innovation the way a startup can, in Lex Clips' view. But that speed cuts both ways.