Cursor vs Factory AI (2026)

Cursor

by Anysphere

Factory AI

by Factory

Pros

• ✓Agent mode plans and implements features autonomously across multiple files, and cloud subagents run in parallel on their own VMs and branches.
• ✓One-click import brings over VS Code settings, keybindings, themes and extensions, and Cursor keeps VS Code's default shortcuts, so switching from VS Code is quick.
• ✓Privacy Mode is available on every plan including the free tier, and is on by default for Teams and Enterprise, where admins can enforce it.
• ✓Self-Hosted Machines runs Cloud Agent tool execution on hardware the team manages, keeping the codebase, build outputs and secrets on internal machines.

Limitations

• –Privacy Mode is off by default on the Hobby and Individual plans, where Cursor states it may store and use codebase data, prompts, editor actions and code snippets to improve the product.
• –Model inference always routes through Cursor's cloud, including when you supply your own API keys, and zero data retention does not apply to those keys. US-only data residency is Enterprise only.
• –Expensive model usage depletes included credits faster than standard models, and agentic code review with Bugbot runs on usage-based billing on Individual rather than being included as it is on Teams.

Pros

• ✓Droid runs across the Factory App, Droid CLI and Droid SDK, with Missions, Automations, Code Review and AutoWiki on the same platform, so one agent covers interactive work, scheduled jobs and pull request review.
• ✓Three deployment models, Factory Managed, Factory Private for VPC, on-premises and air-gapped setups, and Factory FedRAMP for public-sector teams, let regulated organizations keep code and the control plane inside their own infrastructure.
• ✓The public trust center lists SOC 2 Type 2, ISO 27001:2022, ISO 42001 and CCPA, and states that customer data and IP will not be used to train Factory's models or its providers' models. Zero Data Retention is offered on Business and Enterprise.

Limitations

• –There is no free plan, so Pro at $20 a month is the minimum to try the product, and the next individual tiers jump to $100 and $200 a month. The G2 profile is unclaimed and lists the seller as AI Factory, so buyers checking reviews should confirm they are reading this product.
• –Usage is metered by rolling Rate Limits over 5-hour, 7-day and 30-day windows. Missions only run with prepaid Extra Usage switched on and pause when a limit is hit, so heavy autonomous work needs budget planning beyond the plan price.
• –Factory Private is in private preview and FedRAMP authorization is still in progress, so the self-hosted and public-sector deployment options are not yet generally available.