dbt Core is an open-source software package that automates and streamlines data transformations within modern data warehouses, while dbt Cloud is a cloud-based data transformation platform that builds upon the core functionality of dbt Core. dbt Core offers features such as SQL-based transformations, dependency management, incremental processing, version control, testing framework, documentation generation, and customizable configuration, but also has limitations like setup overhead, complicated scheduling, limited collaboration features, and separate documentation. In contrast, dbt Cloud provides a web-based UI with intuitive workflow, built-in scheduling and job orchestration, collaborative workspaces, REST APIs for integration with other tools, enhanced semantic layer for data modeling, and managed infrastructure and maintenance, but also has limitations like cost, vendor lock-in, customization limitations, and performance considerations. The choice between dbt Core and dbt Cloud depends on the organization's requirements, preferences, and existing investments in tooling or infrastructure, as well as their priorities for ease of use, scalability, security, and collaboration.