James' Growth Diary

Apr 14, 2026 · Artificial Intelligence

How Does Cursor Work? Inside the Architecture of an AI Coding Assistant

The article dissects Cursor's four‑layer architecture, explains how it builds context from the current file, vector retrieval and @‑references, compares Cmd+K inline edits with Chat mode, and shares practical tips to avoid common pitfalls when using the AI‑powered IDE tool.