The Ultimate Cursor Killer: A Cheaper, Better AI Coding Setup

Are you still using Cursor? It might be time for an upgrade. While tools like Cursor and Claude Code have become popular, a new combination of tools offers a more powerful, flexible, and significantly cheaper alternative. This guide will walk you through setting up a superior AI coding environment using the GLM Coding Plan and the Kilo Code VS Code extension, a setup that beats the competition in both price and performance.

Why Move Beyond Cursor?

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[GLM Coding Plan pricing page]

The primary reason to look for an alternative to popular AI coding assistants is to find a solution that is both better and more cost-effective. The setup detailed here provides exactly that—a system that is cheaper than a standard Cursor or Claude Code subscription while offering superior features and flexibility. This guide focuses on replacing the two main functionalities of Cursor: auto-completion and the main AI agent.

Introducing Kilo Code: The All-in-One VS Code Extension

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[Kilo Code GitHub repository page showing file structure and README]

Previously, a similar setup required two separate extensions. Now, we’ve streamlined the process by using a single, powerful extension: Kilo Code. This tool is a significant improvement over Cursor’s implementation and provides a cleaner user experience compared to other open-source alternatives like Cline and Roo Code, which many users find cluttered.

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[Kilo Code README highlighting its key features]

Kilo Code is a fork of Cline and Roo Code, but it has evolved significantly. While initial versions didn’t add many new features, recent updates have introduced excellent functionalities, including seamless auto-complete integration.

Open-source VS Code AI agent. We frequently merge features from open-source projects while building our own vision.

A major advantage is that the Kilo Code provider doesn’t charge a markup fee, unlike services like OpenRouter which can add a 10% surcharge. This makes it more economical, especially for users who frequently switch between different AI models.

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[Kilo Code GitHub releases page showing rapid updates]

The development pace of Kilo Code is impressive. For instance, support for GLM-4.6 was added to Kilo Code almost immediately after the model’s launch. In contrast, tools like Cline have shown slower momentum, taking several days longer to integrate the same model. This rapid adoption of new models makes Kilo Code ideal for developers who need to test and utilize the latest AI capabilities as soon as they are available.

The Powerhouse: Z.AI’s GLM Coding Plan

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[GLM Coding Plan pricing options: Lite, Pro, and Max]

The core of this setup is the GLM Coding Plan from Z.AI. This plan grants access to GLM-4.6, a versatile and powerful all-around model that can be configured for various scenarios and agents. While this guide focuses on its integration with Kilo Code, it is compatible with a wide range of other coding tools.

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[Detailed view of the GLM Coding Plan benefits and pricing tiers]

The pricing structure is incredibly competitive. There are three main tiers (Lite, Pro, Max) available on a monthly, quarterly, or yearly basis. Crucially, you get a 50% discount on your first term, regardless of the plan you choose. This means you can start with the Lite plan for just $3, test it for a few days, and then upgrade to a higher-tier yearly plan while still receiving the 50% discount on that first year. This makes it a much cheaper and more generous alternative to Cursor, which costs $20/month and has restrictive limits, or Claude Code, which also suffers from poor usage limits.

Getting Started: Your 3-Step Setup Guide

Setting up your new AI coding environment is straightforward.

1. Install Kilo Code

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[Searching for and installing the Kilo Code extension in the VS Code Marketplace]

First, open VS Code, navigate to the Extensions marketplace, search for “kilo code,” and install the Kilo Code AI Agent. Once installed, you’ll find the Kilo Code icon in your sidebar.

2. Configure the GLM Coding Plan

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[Configuring the Z AI provider in Kilo Code settings]

Open the Kilo Code panel and select “Use your own API key”. In the settings, change the API Provider to Z AI. For the Z AI Entrypoint, choose International Coding Plan. Then, retrieve your API key from the Z.AI platform’s API Keys section and paste it into the Z AI API Key field. Finally, select glm-4.6 as your model. You are now ready to start coding.

3. Customize Your Experience

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[Kilo Code settings for triggers and autocompletion]

To enable auto-completion, go into the Kilo Code settings, navigate to the autocomplete tab (the icon with a lightning bolt), and enable the “Pause to Complete” option. This feature, powered by the Codestral model, provides intelligent code suggestions as you type. For this to work, ensure you have a provider configured for autocomplete under Advanced settings > Provider, such as Kilo Code, OpenRouter, or Codestral itself. The extension is highly customizable, allowing you to set trigger delays, configure quick tasks, and even adjust display elements like task timelines and gutter animations.

For the Terminal Lovers: Claude Code + GLM

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[Configuration code in a settings.json file for Claude Code]

If you prefer a terminal-based workflow, you can combine Claude Code with the GLM Coding Plan. This is an even more powerful option, as GLM is fine-tuned for this environment. Simply edit the ~/.claude/settings.json file and add the following configuration, inserting your API key.

"env": {
    "ANTHROPIC_BASE_URL": "https://api.z.ai/api/anthropic",
    "ANTHROPIC_AUTH_TOKEN": "YOUR_Z_AI_API_KEY",
    "ANTHROPIC_DEFAULT_HAIKU_MODEL": "glm-4.5-air",
    "ANTHROPIC_DEFAULT_SONNET_MODEL": "glm-4.6",
    "ANTHROPIC_DEFAULT_OPUS_MODEL": "glm-4.6"
},

This setup gives you the best of both worlds: a top-tier terminal AI agent powered by a cost-effective and high-performance model. It’s a simple, effective, and economically smart choice for any developer looking to break free from overpriced and restrictive platforms.