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Cursor 3 Launches an Agent-First Coding Workspace Inside Its IDE

The release signals a push to keep pace with subsidized agent tools from rival AI labs.

Overview

  • Cursor, which unveiled Cursor 3 on Thursday, introduced a workspace that lets developers assign coding tasks to AI agents that carry out the work.
  • The new interface spins up and tracks many local and cloud agents in one sidebar and supports work across multiple code repositories.
  • A handoff feature moves an agent session between the cloud and a local desktop so users can review code, make edits, and run tests on their own machine.
  • Rivals’ pricing looms large as developers report shifting to Claude Code and Codex for generous rate limits, with Menlo Ventures data putting Claude Code’s share near 54%.
  • Trust remains a factor after users learned Cursor’s recent Composer 2 model was largely a licensed version of Moonshot AI’s Kimi 2.5 rather than a fully original system.