The founders did an episode on Lex Fridman's podcast that covers the technical sides of Cursor far better than I ever could: https://www.youtube.com/watch?v=oFfVt3S51T4

But to summarize, Copilot is an okay ChatGPT wrapper for single line code completion. Cursor is a full IDE with AI baked in natively, with use-case specific models for different tasks, intelligent look-ahead, multi-line completion, etc.

If Copilot is a horse, Cursor is a Model T.