What is Cursor 3?

Cursor 3 is the third-generation AI programming tool from Cursor, marking a fundamental shift in its positioning. Unlike its predecessors, which focused on AI-assisted coding—helping with code completion, explanation, and review—Cursor 3 transforms the IDE into a unified collaboration workspace designed specifically for AI agents. In this new paradigm, you become the project manager, while the AI agent takes on the role of executor. You can manage multiple agents simultaneously, assigning them different tasks across various code repositories, while your role shifts to reviewing, deciding, and coordinating.

Cursor’s official statement emphasizes that this marks the arrival of the “third era of software development.” The first era involved manually writing code, the second was AI-assisted coding, and the third is about “humans managing AI agents to complete development tasks.”

User Growth and Revenue of Cursor

Cursor’s growth can only be described as “rocket-like.” Over three years, Cursor (parent company Anysphere) completed five funding rounds, raising over $3.3 billion:

The valuation skyrocketed from $400 million in Series A to $29.3 billion in Series D, representing a growth of over 70 times in just three years—an unprecedented pace in tech startup history.

In terms of revenue, Cursor’s ARR (Annual Recurring Revenue) growth is equally impressive:

• March 2025: $150 million
• June 2025: Surpassing $500 million (233% quarter-over-quarter growth)
• End of 2025: Expected to approach $1 billion

The customer base is also notable—over half of the Fortune 500 companies are using Cursor, including tech giants like Nvidia, Adobe, and Midjourney. This data was surprising; I initially thought GitHub Copilot would dominate this market, but Cursor’s rapid growth is outpacing expectations.

Core Features of Cursor 3

The core functionalities of Cursor 3 can be understood through several modules:

Unified Workspace Interface

This is the most significant change in Cursor 3. The traditional code editor layout has been completely redesigned, focusing on “connection”—helping engineers manage the tasks and statuses of multiple agents. In this new interface, you no longer see just a list of code files; instead, you can view the real-time status, task progress, and output results of all agents.

Multi-Repository Collaboration Support

Previous AI programming tools typically handled only one code repository. However, real-world projects often involve multiple repositories. Cursor 3 natively supports a multi-workspace architecture, allowing developers to seamlessly switch between multiple code repositories, enabling AI agents to work on cross-repository tasks simultaneously. This feature is particularly useful for medium to large development teams.

All-Channel Agent Integration and Management

Cursor 3’s sidebar allows for unified management of agents from different channels:

• Platforms: Mobile, Web, Desktop
• Third-party Tools: Slack, GitHub, Linear, etc.

Whether agents are running locally or in the cloud, their statuses and tasks are synchronized in real-time to the sidebar. This means you can view all agent work statuses in one interface without switching between multiple tools.

Seamless Switching Between Cloud and Local Environments

This feature feels particularly innovative. While a cloud agent is processing tasks, you can pull its session into the local environment for deeper debugging and editing. Conversely, you can push local development progress to the cloud, allowing the cloud agent to continue processing. Tasks can migrate freely between the two environments, offering much more flexibility than previous “local-only development” setups.

Visual Verification Mechanism

Traditionally, after AI generates code, you would have to run tests to verify its correctness. Cursor 3 introduces a clever feature—automatically generating demos and screenshots. After a cloud agent completes a functional module, it will automatically generate a visual demonstration or screenshot, allowing you to assess whether the agent’s work is on the right track without delving into code details.

Flexibility of Modes

Concerned about the new interface being too unfamiliar? No worries. Cursor 3 allows you to switch between the new unified workspace interface and the traditional Cursor IDE interface at any time. If you prefer the previous operation style, you can easily revert.

Target Audience for Cursor 3

Cursor 3’s target users can be categorized into several tiers:

For individual developers, Cursor 3’s value lies primarily in efficiency—many repetitive coding tasks can be delegated to agents, allowing focus on architecture design and critical logic. For team users, the multi-repository collaboration and unified management features are even more valuable, as managing multiple agents is inherently more complex than managing a single agent.

Application Scenarios for Cursor 3

Based on my understanding of Cursor 3, it is particularly useful in the following scenarios:

1. Modular Development of Large Projects

When a project is divided into multiple microservices or submodules, different AI agents can be assigned to handle each module. Cursor 3’s multi-repository collaboration feature allows you to monitor the development progress of all modules simultaneously.

2. Automated Refactoring of Legacy Code

Many teams have legacy code they are hesitant to touch due to high risks. Cursor 3 enables agents to attempt refactoring in the cloud, allowing you to confirm correctness through visual verification before merging into the main branch.

3. Rapid Prototyping

Need to quickly validate an idea’s feasibility? Let a cloud agent run a prototype, and you can assess the outcome directly, determining in minutes whether the direction is worth further investment.

4. Cross-Technology Stack Project Development

Some projects require involvement across multiple technology stacks, including front-end, back-end, and mobile. Cursor 3 allows different agents to handle their respective strengths, which you can then integrate.

5. Automated Test Generation

This is one of the scenarios I use the most. Let agents automatically generate unit tests and integration tests, and you only need to review whether the test cases’ coverage is sufficient.

Differences Between Cursor 3 and Competitors

The AI programming tool market currently has several major players:

Cursor 3’s differentiation lies in its focus on “agentification.” Other tools essentially follow the paradigm of “you write code, AI assists,” whereas Cursor 3 is moving towards “AI writes code, you manage.” This gap will become increasingly apparent over time. While Copilot and others are still optimizing the “completion” experience, Cursor 3 is competing on an entirely new dimension.

Tips for Using Cursor 3

Based on my experience, here are some tips to help you get up to speed quickly:

Tip 1: Familiarize Yourself with Core Operations in Traditional Mode

While Cursor 3’s new interface is powerful, if you haven’t used Cursor before, it’s advisable to start with the traditional mode to get accustomed to core operations—Ask mode, Agent mode, Plan mode. Once these operations become second nature, switching to the new interface will be much smoother.

Tip 2: Set Clear Checkpoints for Cloud Tasks

When a cloud agent is processing tasks, it’s advisable to have it output a “progress report” at intervals, rather than expecting it to complete the entire task in one go. This way, if it goes off track, adjustments can be made timely instead of starting over.

Tip 3: Visual Verification Before Code Review

When an agent completes a function, don’t rush to inspect the code. First, use the visual verification feature to check the results—whether the interface meets expectations, whether the data is correct, and whether the logic flows properly. Confirming correctness before diving into code details will greatly enhance efficiency.

Tip 4: Clarify Roles for Multi-Agent Collaboration

If multiple agents are working on the same task simultaneously, it’s easy to encounter “duplicate labor” or “conflicts.” It’s advisable to clarify each agent’s responsibilities beforehand and use Cursor 3’s task management features to set boundaries for them.

Tip 5: Regularly Sync Cloud and Local Environments

Don’t wait until it’s necessary to sync. Make it a habit to regularly push local progress to the cloud and pull cloud statuses back to local. This maximizes the avoidance of issues caused by environment inconsistencies.

Value of Cursor 3 for Enterprises and Individuals

For Individual Developers

For Enterprise Users

In summary, the value of Cursor 3 for enterprises lies in scalability—not just improving an individual developer’s efficiency, but amplifying the capabilities of the entire development team.

Pricing of Cursor 3

Cursor 3 continues with its subscription model:

For individual developers who use it occasionally, the Free version is sufficient. However, to fully leverage Cursor 3’s agent capabilities, the Pro version is the minimum requirement—$20/month is reasonable for professional developers.

For enterprise users, the Business version’s team collaboration and security management features are essential, making this investment worthwhile.

Overall Evaluation

Cursor 3 has reignited my interest in the category of “AI programming tools.” Previously, I felt this market was mired in homogeneous competition—Copilot completes code, Cline explains code, and Cursor seemed to do similar things. The differences were merely in accuracy or response speed.

However, Cursor 3 is different. It does not continue to compete on the dimension of “completion” but has upgraded to the dimension of “collaborative management.” This shift makes me feel that what Cursor is doing is no longer just about “having AI help you write code,” but rather “having AI help you run a company”—at least a software development company that doesn’t require as many people.

Of course, this new paradigm is still in its early stages, and some features are not yet mature (such as conflict handling in multi-agent collaboration), but the direction is promising.