The single biggest shift is that Cursor's one product becomes two separate decisions: which editor to run, and which AI layer to attach to it. That separation is exactly what you want for control, but it means no option here is a drop-in AI editor out of the box. VSCodium is the closest to Cursor's underlying base, since it is Visual Studio Code without Microsoft's telemetry, so many settings, keybindings, and workflows carry over. Eclipse Theia goes further toward Cursor's actual promise, with a self-hostable, AI-native IDE that runs VS Code extensions while keeping control over your data.
Extensions are where the seams show. VSCodium and Theia both use the open-vsx registry rather than Microsoft's marketplace, so some extensions you relied on may have a different build or none at all, and you should check the specific ones you depend on before switching. The AI experience is yours to assemble: a local model keeps code on the machine but needs real CPU, memory, or GPU to feel responsive, while an approved hosted endpoint gives stronger multi-file reasoning at the cost of sending context out. Many teams run both, local for routine completion and hosted for heavier work.
Your source code never moves. Repositories, branches, and build scripts stay put, so this is an editor and workflow migration, not a data one. What does not transfer is Cursor's chat history, generated indexes, and custom prompts, so copy the decisions worth keeping into commit messages or design notes first. If keeping code on infrastructure you control is the whole reason you are leaving, code-server runs a full editor in the browser on your own server, and Zed gives a fast native option to test alongside it.