Take a moment to read the best practices section of the documentation for each. You will soon notice they have quite different technical, philosophical, opinions.
Cypress:
Playwright:
One big difference, is the recommended locator strategies.
Cypress encourages the use of data-cy test id’s, so make a unique test only id.
Playwright recommends using accessibility based selectors, and finding elements on the page as a user, or screen reader, would interact with them.
This one different is a great example about how as pools they have different intentions.
If you are planning to do API testing, it’s not that big of a deal but Cypress still spins up a browser in order to just to API testing (without any UI tests)
Playwright is also backed by Microsoft
But it’s not about “what’s the best tool”, you have to pick the tool that fits your (team-)organization. Playwright might have a higher learning curve for your team.
I wrote an article about this question focusing on clean code, easy debugging, and a short runtime in the CI pipeline - plus some links to resources that turned out useful for me.