Cursor vs Zed: Complete Comparison Guide

Cursor and Zed take very different approaches to coding. Cursor builds on the familiar VS Code foundation and adds a lot of features to help you work across multiple files, manage projects, and access a wide range of extensions. Zed, on the other hand, is built from scratch in Rust with speed and low latency in mind, and it performs particularly well when you need real-time multiplayer collaboration.

Let’s compare Cursor and Zed across performance, collaboration, platform support, and pricing to help you find the best fit for your workflow.

Why Developers Are Choosing AI-Powered Editors

AI features in code editors are becoming standard rather than optional. The 2025 Stack Overflow Developer Survey reports that 84% of developers are currently using or plan to use AI tools in their workflow, up from 76% the previous year.

Assistants like GitHub Copilot, Amazon CodeWhisperer, Tabnine, and others have shown that AI can speed up routine tasks, and many developers now expect their editors to help with boilerplate, explain unfamiliar code, and suggest refactors.

Cursor integrates AI directly into the editor, running models like ChatGPT or Claude inline and using your project context to make suggestions. Zed focuses on performance and responsiveness first, with AI features as an optional layer. The decision comes down to whether your workflow benefits more from AI guidance or a lightweight, fast editor.

What is Cursor?

Cursor is an AI‑assisted integrated development environment that started as a fork of Visual Studio Code, built by the startup Anysphere to make AI a central part of the coding experience rather than an add‑on. It integrates large language models directly into the editor, allowing you to query and manipulate your codebase in natural language, generate or refactor code, and navigate project context without leaving the IDE. 

Cursor supports models like GPT‑4 and Claude (including agent‑style workflows), and lets you choose how you want the assistance to behave. It still retains VS Code’s extension system and familiar interface while adding project‑wide AI‑aware capabilities.

It’s designed for developers and teams who use AI regularly, especially for multi-file edits, code explanations, and reducing repetitive tasks, keeping you in flow across your project.

Key Features

Some important features of Cursor include:

• Natural Language Interaction: Generate, fix, or refactor code by describing your intentions in plain English.

  
  

• Codebase Understanding: Indexes the project to provide context-aware answers to questions about your code.

  
  

• Advanced Autocompletion: Offers multi-line suggestions that can apply changes with a single keystroke.

  
  

• Multi-file Edits ("Composer" Mode): Allows coordinated changes across multiple files, with a preview before applying.

  
  

• Extensibility: Works with most VS Code extensions, themes, and keybindings.

  
  

• Privacy Mode: Keeps sensitive code local, avoiding remote storage.

What is Zed?

Zed is an open-source, high-performance code editor built from scratch using the Rust programming language, prioritizing speed, real-time collaboration, and a minimalist user experience. Developed by the team behind the former GitHub Atom editor, Zed differentiates itself from popular, web-technology-based editors (like VS Code, which uses Electron) by leveraging GPU acceleration and native code to achieve imperceptible latency and low resource usage.

Zed’s philosophy focuses on performance and essential features:

• Speed: Fast startup and responsive editing.

• Collaboration: Multiplayer editing with shared terminals and optional voice chat.

• AI: Code generation and analysis via hosted models or your API keys.

• Minimal Design: Clean interface to keep the focus on code.

Key Features

Zed provides a lightweight, performance-oriented editing experience with collaborative and language-aware features.

• Real-time Collaboration: Multiplayer mode allows multiple developers to edit the same file with visible cursors and selections. Peer-to-peer connections keep latency low.

  
  

• Performance: Built in Rust, Zed starts quickly, handles large files smoothly, updates syntax highlighting instantly, and keeps memory usage low.

  
  

• Language Support: Includes built-in language servers for major languages. Features like go-to-definition, find references, and inline diagnostics work without extra configuration.

  
  

• Minimal Interface: The UI relies on keyboard shortcuts, avoiding unnecessary buttons or panels.

  
  

• Project-wide Search: Search is fast and interactive, supporting millions of lines and updating results as you type.

Cursor vs Zed: Detailed Comparison

Feature	Cursor	Zed
Performance	Electron-based; cold start ~2-3s, memory 500–800MB	Rust-based; cold start ~200ms, memory 200-400MB
AI Features	Built-in GPT/Claude; code generation, refactoring, inline help	No native AI; external AI can be used manually
Collaboration	Team accounts, shared AI credits, VS Code Live Share	Real-time multiplayer, peer-to-peer, low latency
Platform & Extensions	Windows, macOS, Linux; full VS Code extensions	macOS/Linux; limited extensions; built-in language servers
UX & Learning	VS Code-like; AI prompts need some learning	Minimal, keyboard-driven; command palette-focused
Pricing	Freemium; Pro $20/mo, Pro+ $60/mo, Ultra $200/mo	Free, open source
Community	AI-focused; Discord, frequent updates	Open source; GitHub, public discussions

Performance & Speed

Zed has faster startup and lower memory usage due to its Rust implementation. On a MacBook Pro, cold start takes around 200ms, and memory usage for a medium project is 200-400MB. Cursor, built on Electron, starts in 2-3 seconds with memory around 500–800MB, which can increase when AI features are active. Zed handles large files and scrolling smoothly, while Cursor can lag under heavy AI processing.

File indexing is faster in Zed. A 100k-line TypeScript project indexes in seconds, while Cursor takes longer to build AI context maps, which supports more informed AI suggestions.

AI & Smart Features

Zed has faster startup and lower memory usage due to its Rust implementation. On a MacBook Pro, cold start takes around 200ms, and memory usage for a medium project is 200-400MB. Cursor, built on Electron, starts in 2–3 seconds with memory around 500-800MB, which can increase when AI features are active. Zed handles large files and scrolling smoothly, while Cursor can lag under heavy AI processing.

File indexing is faster in Zed. A 100k-line TypeScript project indexes in seconds, while Cursor takes longer to build AI context maps, which supports more informed AI suggestions.

Collaboration & Team Workflow

Zed provides real-time multiplayer editing with low latency, showing teammates’ cursors and selections. This works well for synchronous debugging or code reviews.

Cursor supports team accounts with shared AI credits and VS Code Live Share.

It works better for asynchronous workflows where AI access is shared rather than simultaneous editing. The right choice depends on whether your team prioritizes synchronous or asynchronous collaboration.

Platform & Extension Support

Cursor inherits the full VS Code extension marketplace. Thousands of extensions work without modification, including language support, themes, debuggers, and productivity tools. This compatibility means you can migrate from VS Code to Cursor without losing your workflow customizations.

Zed focuses on macOS and Linux, with limited extension support and built-in language servers for major languages like Rust, Go, TypeScript, and Python. Windows support is still in development.

User Experience & Ease of Use

Zed has a minimal, keyboard-driven interface. Most actions use the command palette and shortcuts, keeping the interface uncluttered.

Cursor feels like VS Code, so teams familiar with it adapt quickly. AI features add new shortcuts and panels but don’t fundamentally change the experience. VS Code users transition immediately, while Vim or Emacs users may prefer Zed’s keyboard-first approach. Learning to prompt effectively in Cursor takes a few days.

Pricing & Licensing

Cursor offers a tiered model:

• Hobby (Free): One-week Pro trial, limited Agent requests and tab completions.

• Pro ($20/mo): Extended Agent limits, unlimited tab completions, background Agents.

• Pro+ ($60/mo): Pro features plus 3x usage on AI models.

• Ultra ($200/mo): Pro features plus 20x AI usage and priority access to new features.

Zed is fully open source and free, with no usage limits. For a five-person team, Cursor’s Pro+ or Ultra plan could cost $300-$1,000/month, while Zed has no direct cost beyond setup and learning time. This difference may matter for budget-conscious teams.

When to Choose Cursor

Cursor is best for teams that rely on AI throughout their workflow. Startups building MVPs can save time on repetitive tasks, while junior developers and bootcamp grads can explore codebases faster using inline questions. Remote teams benefit from shared AI resources without juggling separate tools.

It works particularly well for full-stack web development, where generating API endpoints, database schemas, or frontend components through AI prompts can save hours. Code review is also faster when you can ask the editor to explain a function instead of parsing it manually.

• Ideal for teams using AI tools daily.

• Speeds up development in projects with repetitive code.

• Consolidates AI tools for better context and efficiency.

When Zed Is the Better Pick

Zed suits developers who prioritize speed and a lightweight environment over AI assistance. Large monorepos benefit from its responsiveness, and open-source contributors appreciate its transparent development model.

Solo developers or small teams that frequently pair program gain from real-time editing and low-latency collaboration, which works better than screen sharing. Developers concerned about code privacy or who prefer manual coding will find Zed less distracting.

• Best for large projects or performance-sensitive workflows.

• Real-time collaboration for paired or small-team coding.

• Minimal interface for focused development without AI interruptions.

How to Decide Between Cursor and Zed

The right editor depends on your workflow, team setup, and project demands. Cursor works well if AI assistance is central and you need Windows support or shared AI resources. Zed is a better fit for performance-focused projects, large codebases, and real-time collaboration on macOS or Linux. Budget, extensions, and team size also play a role in the choice.

Factor	Cursor	Zed
Budget	Free (Hobby), $20–$200/mo per user	Free, open source
AI Dependency	Best for AI-heavy workflows	No native AI; manual coding preferred
Platform	Windows, macOS, Linux	macOS, Linux (Windows in progress)
Collaboration	Shared AI credits, Live Share	Real-time multiplayer, low-latency
Codebase Size	Small to medium fine; large projects slower under heavy AI	Handles large monorepos efficiently
Extensions	Full VS Code extension support	Limited; built-in servers for major languages

Your Next Step

Cursor and Zed work in very different ways. If you rely on AI to speed up coding, Cursor can help. If you care more about raw speed and smooth collaboration, Zed is the better fit. The easiest way to know what works for you is to try each for a week and see which fits your workflow.

You can connect with our experts to get guidance on setup, workflow, and team collaboration with Cursor or Zed.

Frequently Asked Questions

How much RAM does Cursor use vs Zed with a 50k file project?

Zed typically uses 300-500MB of RAM on a 50k file TypeScript project. Cursor uses 700-1200MB for the same project, with additional spikes when AI features process code. The difference comes from Electron's overhead and Cursor's AI context management. For machines with 8GB RAM or less, this gap affects performance noticeably.

Can I use Cursor completely offline without AI features?

Yes, Cursor works offline as a standard code editor. The AI features require internet connectivity to reach OpenAI or Anthropic APIs. When offline, you lose code generation, inline explanations, and chat features, but syntax highlighting, debugging, and extensions continue working. The editor doesn't require constant connectivity for basic editing.

Does Cursor send my code to OpenAI/Anthropic servers?

Yes, when you use Cursor's AI features, parts of your code are sent to external servers run by AI providers like OpenAI and Anthropic. Cursor offers a "Privacy Mode" setting which, when enabled, ensures that these providers do not log, store, or use your code for training their models, enforcing a zero-retention policy. For maximum security, you can use "Local Mode" to run models entirely on your machine.

How do I migrate my VS Code settings and extensions to Cursor?

Cursor automatically imports VS Code settings on first launch. Extensions transferred by installing them through Cursor's extension panel since it uses the same marketplace. Keybindings, themes, and workspace settings copy directly. The migration takes minutes, and you can sync settings between both editors if needed.

What's the actual monthly cost for a 5-person team on Cursor?

A five-person team on Cursor Business costs $200 per month ($40 per user). This includes shared AI credits, team management features, and priority support. Heavy AI usage may require purchasing additional credits beyond the base allocation. The free tier supports small teams with lower usage limits but lacks team management features.

Does Zed support Jupyter notebooks or only pure code files?

Zed currently supports only standard text-based code files. Jupyter notebooks require specialized rendering that Zed doesn't provide yet. Data scientists working primarily in notebooks should stick with JupyterLab, VS Code, or Cursor. Zed works for Python scripts and modules but not interactive notebook formats.

Can multiple developers share Cursor AI credits on one account?

Yes, Cursor Business accounts pool AI credits across team members. The entire team draws from a shared credit allocation that refreshes monthly. This prevents individual developers from hitting limits during heavy usage periods. Administrators can view team-wide usage and add credits if needed.

Is there a Cursor educational discount for students/bootcamps?

Yes, Cursor offers an educational discount that provides eligible students with one free year of their premium Cursor Pro plan.

To qualify and apply:

• Visit the official Cursor Students page.

• You will need to verify your status using a valid university email (e.g., a .edu address) or by uploading proof of enrollment via the third-party service SheerID.

• The offer is available to verified students at eligible universities and sometimes includes bootcamp students, depending on the country and verification process.

This provides full access to all Pro features for 12 months, after which you would need to start paying or revert to the free tier.