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Cursor, a modified version of Visual Studio Code with AI features, has released an update that brings partial coding automation through AI agents that can independently navigate contexts and execute terminal operations.

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The update enables AI agents to respond to error messages and make autonomous decisions to resolve issues. In a demonstration on X, user Wes Winder shows how Cursor creates a complete web-based stopwatch application using HTML, CSS, and JavaScript, including launching the web server, all from a single text prompt.

Video: Wes Winder/X

The update also revamps Cursor's Composer tool, which manages projects through chatbot interactions. The tool now appears prominently in the sidebar and shows code changes inline. Additional improvements include file recommendations in Chat and Composer, with a new "@Recommended" command for semantic context searches.

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Other updates include streamlined image drag-and-drop functionality, performance improvements, and a preview of upcoming bug detection features.

Anysphere raises 60 million

Anysphere, the company behind Cursor, has secured $60 million in funding from investors including Andreessen Horowitz and Thrive Capital. While OpenAI provided initial backing, the company has now expanded its investor base.

The software remains free to download and works with various language models like GPT-4, Claude 3.5 Sonnet, or Code Llama, either locally or through APIs. A $20 monthly Pro subscription unlocks additional features, including the new AI agents. Cursor reports having more than 40,000 customers as of August 2024.

The AI coding market is heating up, with companies like StackBlitz (Bolt.new), Vercel (v0.dev), and Codeium (Windsurf) introducing their own tools. Just a few months ago, AI coding assistants could only spit out basic code snippets that required extensive human editing. Now, tools like Cursor can automate much more of the development process.

Some developers worry that, over time, these tools will lead to lower quality code and introduce more bugs than human-written code. While Cursor's update fits into a broader trend toward AI agent systems like Claude Computer Use, these technologies may not yet be the best fit for all use cases.

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Summary
  • The AI code tool Cursor has presented a first AI agent that can independently select contexts and use the terminal to execute commands and troubleshoot errors.
  • In a demonstration, Cursor created a stopwatch web application in HTML, CSS and JavaScript from a simple command prompt in just a few minutes. Other improvements include a revamped composer, file recommendations, simplified image insertion and improved performance.
  • The start-up Anysphere, which is behind Cursor, recently completed an investment round of 60 million US dollars. Cursor can be downloaded free of charge and linked to various language models. A Pro membership starting at 20 dollars per month unlocks additional functions such as the agent.
Sources
Jonathan works as a freelance tech journalist for THE DECODER, focusing on AI tools and how GenAI can be used in everyday work.
Join our community
Join the DECODER community on Discord, Reddit or Twitter - we can't wait to meet you.