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Claude Code vs. Cursor vs. Copilot: Why the Future of Coding lives in the Terminal

The debate over "which AI coding tool is best" has officially moved beyond "which model is smarter." In late 2025, the battleground is no longer just the LLM—it’s the interface.

For the last two years, we’ve been comfortable with the "Copilot" paradigm: an AI that lives in your sidebar, politely suggesting code snippets. But the recent release of Claude Code (and Anthropic’s strategic acquisition of the Bun runtime this month) has signaled a violent shift in the ecosystem.

We are moving from AI Assistants (Copilot) to AI Editors (Cursor) and finally to AI Agents (Claude Code).

Here is why the future of coding might not happen in your IDE at all, but in your terminal.

The Three Philosophies of AI Coding
To understand why Claude Code is different, we have to look at the three distinct categories of tools available today.

  1. The "Smart Typewriter" (GitHub Copilot) Interface: IDE Extension (VS Code, JetBrains).

Philosophy: "I will help you write faster."

Best For: Autocomplete, boilerplate, and quick function generation.

Copilot is the safe, enterprise-standard choice. It doesn't want to take over your computer; it just wants to predict your next keystroke. It is excellent at tactical speed (typing faster), but it lacks strategic awareness. It struggles to refactor an entire codebase because it is constrained by the "open file" context of your editor.

  1. The "AI-Native Editor" (Cursor) Interface: Forked IDE (Custom build of VS Code).

Philosophy: "I will help you edit faster."

Best For: Flow state, "Tab-Tab-Tab" coding, and refactoring within a project.

Cursor realized that an extension wasn't enough. By forking VS Code, they gained control over the cursor itself (hence the name). They introduced the "Shadow Workspace"—a hidden instance of your code where the AI can check for linting errors before it suggests a fix. Cursor is currently the king of "Developer Experience" (DX). It feels magical. But it is still fundamentally a text editor.

  1. The "Autonomous Agent" (Claude Code) Interface: CLI (Command Line Interface).

Philosophy: "I will do the work for you."

Best For: "Scut work," large refactors, writing tests, debugging, and migrations.

Claude Code ditches the GUI entirely. It lives in your terminal. This seems regressive until you realize what it unlocks: Autonomy.

Because it runs in the shell, Claude Code isn't just generating text; it is executing commands. It can run your test suite, see that it failed, read the error log, edit the file, and run the test again—all without you touching the keyboard.

The "Bun" Acquisition: Why It Matters
Earlier this month (December 2025), Anthropic acquired Bun, the incredibly fast JavaScript runtime. At first glance, this seemed like a random purchase for an AI company.

But in the context of Claude Code, it makes perfect sense.

If you want an AI to write and run code loops thousands of times a day, latency is the enemy. Node.js is too slow for the "Write -> Run -> Fail -> Fix" loop of an agent. Bun is 3-4x faster. By owning the runtime, Anthropic is building a vertically integrated stack where the AI doesn't just write code—it controls the physics of how that code runs.

This suggests a future where Claude Code doesn't just "guess" if your code works; it spins up a micro-environment, verifies it instantly using Bun, and hands you a finished, passing result.

Deep Dive: Why the Terminal Wins
Why would you leave the comfort of VS Code/Cursor for a black box terminal window?

  1. The "Plan" Mode When you ask Copilot to "refactor the auth system," it panics. It starts spitting out code in your chat window that you have to copy-paste. When you ask Claude Code the same thing, it enters Plan Mode. It reads your file structure, analyzes dependencies, and proposes a 10-step plan:

"I will 1) create a migration for the User table, 2) update the auth.ts middleware, and 3) patch the login route." You type "y" (yes), and it goes to work. It edits multiple files across directories that aren't even open.

  1. Truth, Not Just Text In an IDE, the AI's output is just text. It doesn't know if that text compiles. In the terminal, Claude Code can run npm test or cargo build. Its "ground truth" isn't the probability of the next token; it is the exit code of your compiler. If the compiler errors, Claude knows it failed.

  2. Context Is King Cursor handles context well (using RAG), but Claude Code seems to ingest the entire repository state more naturally. Because it is a CLI tool, you can pipe anything into it. git diff --name-only master | claude "Review these changes for security flaws" This unix-philosophy integration allows it to fit into pipelines that GUI tools simply cannot touch.

The Verdict: The Hybrid Workflow
Is it time to uninstall Cursor? No.

The reality of late 2025 is a Hybrid Workflow:

Use Cursor for "Art": When you are designing a new feature, exploring an API, or doing creative logic where you want to see every character as it's typed.

Use Claude Code for "Chore": When you need to upgrade a dependency, fix a weird linter error, write unit tests for an edge case, or refactor a messy module.

The future isn't one or the other. It is using the high-bandwidth visual interface (Cursor) for the human creative process, and the high-agency terminal interface (Claude Code) for the execution.

But make no mistake: as agents get smarter and runtimes like Bun get faster, the amount of time you spend "writing" code is going to drop. We are all becoming engineering managers, and Claude Code is the first intern that actually listens.

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