Claude Code vs Cursor for teams, in short
The short answer on Claude Code vs Cursor for teams: Claude Code starts from the terminal and works as an agent. Cursor starts from the editor and builds agents into it. Both now reach well past their starting point.
An agent here means a tool that reads your code, edits files and runs commands to finish a task, not just suggest a line. Both tools do this. They differ in where your engineers spend their time while it happens.
Valley AI works with both, and many of the teams we advise use both. This guide aims to help you pick a default and set shared habits, whichever you choose.
How does each tool work?
Claude Code is Anthropic's coding agent. Its overview says it reads your codebase, edits files and runs commands. It runs in the terminal, in VS Code and JetBrains extensions, in a desktop app and on the web.
Cursor is an AI code editor. Its VS Code migration guide imports extensions, themes, settings and keybindings in one step. Cursor also has a CLI for terminal and CI (continuous integration) use.
Both can run work away from a laptop. Cursor's cloud agents run in cloud virtual machines and can be started from the editor, the web, Slack or a GitHub comment. Claude Code runs sessions on the web and in GitHub Actions.
| Question | Claude Code | Cursor |
|---|---|---|
| Where it starts | Terminal agent, with IDE extensions, desktop and web | Code editor with a built-in agent, plus a CLI |
| Project rules file | CLAUDE.md, or AGENTS.md when there is no CLAUDE.md | AGENTS.md or .mdc files in .cursor/rules |
| Org-wide rules | Managed CLAUDE.md deployed to each machine | Team rules set in the Cursor dashboard |
| Reusable workflows | Skills in .claude/skills, shared via plugins | Skills in .cursor/skills or .agents/skills, shared via plugins |
| Command safety | Asks before edits and most shell commands; allow and deny rules | Run modes with allowlists, a sandbox and a classifier |
| Automated PR review | GitHub Actions and a code review feature | Bugbot |
| Pricing shape | Claude subscription seats or pay-as-you-go API | Per-seat team plan with usage limits |
How do shared rules work with AGENTS.md, CLAUDE.md and Cursor rules?
Shared rules are the single biggest lever for team quality. A rules file tells every agent your build commands, test commands, conventions and no-go zones. Write it once, commit it, and every session starts from the same page.
AGENTS.md is an open format for these instructions. The AGENTS.md site says it is now stewarded by the Agentic AI Foundation under the Linux Foundation, and lists Cursor among many supporting tools. Agents read the nearest file in the directory tree.
Claude Code's own file is CLAUDE.md. Its memory documentation says it reads AGENTS.md when a repository has no CLAUDE.md. A CLAUDE.md can also import AGENTS.md with an @ path, so one file can serve both tools.
Cursor supports a root AGENTS.md and nested ones in subfolders. Its rules documentation also covers project rules in .cursor/rules, which use the .mdc format. On Team and Enterprise plans, team rules set in the dashboard apply across the organization.
- Keep one AGENTS.md at the repo root as the source of truth.
- If you use Claude Code with a CLAUDE.md, import AGENTS.md from it rather than copying text.
- Keep the file short. Anthropic suggests under 200 lines per CLAUDE.md, since long files reduce how well rules are followed.
- Add a rule when an agent makes the same mistake twice, not before.
- For help writing it, see our AGENTS.md service.
What about skills, plugins and hooks?
A skill is a folder with a SKILL.md file that teaches the agent a repeatable task, such as a release checklist. Claude Code's skills documentation says its skills follow the Agent Skills open standard. Commit them to the repo to share them.
Cursor supports skills too. Its skills documentation lists project folders in .cursor/skills and .agents/skills. Both tools let the agent pick a skill when it fits, or let you call one by typing a slash.
Both tools bundle skills into plugins and share them through marketplaces. Both also support hooks, which run your own scripts at set points, such as formatting after each edit. Hooks enforce what a rules file can only request.
What review and safety habits should AI coding agents for engineering teams follow?
The tool matters less than the habits around it. An agent that writes code quickly still needs a person who reads the diff and owns the merge.
Claude Code asks before it edits files and before most shell commands. Its permissions documentation describes allow, ask and deny rules you can commit to share with the team. Admins can also push managed settings to every machine.
Cursor controls commands through run modes: an allowlist, an auto-review mode with a sandbox and a classifier, and a mode that runs everything. Team admins can limit which modes people may use. Cursor notes the classifier can make mistakes.
For review help, Cursor's Bugbot comments on pull requests and reads project context from .cursor/BUGBOT.md. Claude Code can review pull requests through GitHub Actions. Treat both as a second reader, not a replacement for yours.
- A person reviews and merges every agent change.
- Deny rules or admin limits block pushes to main and production commands.
- Agents run tests before they open a pull request.
- Secrets stay out of the repo and out of agent prompts.
- Nobody runs an agent with every check turned off on a machine that holds production credentials.
How do the cost models compare?
Both vendors price by seat, with usage limits, and the details change often. Check the official pages before you budget: Claude pricing and Cursor pricing.
Claude Code comes with Claude subscription plans. On the Team plan you pick standard or premium seats, and premium seats carry more usage. Claude Code shares a usage pool with chat. Teams can also pay per token through an API (application programming interface) account instead.
Cursor sells a per-seat Teams plan with central billing, SSO (single sign-on), usage analytics and team-wide privacy mode. Its Enterprise plan adds pooled usage, SCIM (automatic user provisioning), audit logs and controls on repos and models.
For example, a hypothetical team of 12 engineers might give everyone the standard tier. After a month of usage data, it might move 3 heavy agent users to a higher tier. Budget from real use, not from a guess.
When should you use Claude Code, Cursor, or both?
Pick by how your engineers work today, then let usage settle the rest. Many teams keep both, because the same AGENTS.md and skills can serve each tool.
- Lean toward Claude Code if your team lives in the terminal, uses JetBrains or Vim, or wants agents in scripts and CI.
- Lean toward Cursor if your team works in VS Code and wants fast edits and review inside the editor.
- Use both if some engineers prefer each. Claude Code even runs as an extension inside Cursor.
- Either way, standardize the rules file, the skills folder and the review habits, not the editor.
- Run a 2-week trial on real tickets with 3 to 5 engineers, and compare review time and rework.
- If you want help with rollout, rules and training, see our Claude Code consulting page.