Cursor faces rivals and licensing controversy

Cursor 3 is all about letting users direct AI agents to handle code across multiple repositories on a project, kind of like being the manager instead of doing all the grunt work yourself.
But it's not all smooth sailing: Claude Code now controls over half the market, and Codex is breaking records in benchmarks.
Plus, Cursor recently caught some heat for releasing Composer 2, which was later discovered to be largely a licensed version of Moonshot AI's open-source Kimi 2.5 model, without disclosing that upfront.

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