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The CEO of Anysphere, the company behind the popular AI-powered coding environment Cursor, issued an apology on Friday for a poorly communicated pricing change to its $20-per-month Pro plan. The changes led to some users expressing concerns about facing unexpected additional costs.
In a blog post, Anysphere CEO Michael Truell acknowledged the mishandled pricing rollout, stating, “Our communication was not clear enough and came as a surprise to many of you.” The update to Cursor’s Pro plan on June 16 replaced the previous model with a new system where users receive $20 worth of usage per month, billed at API rates. Once users reach the limit, they must purchase additional credits to continue using the service.
Despite Anysphere’s intention to refund users who were unexpectedly charged and improve clarity on pricing changes, the company declined to comment further on the matter.
Price Changes and Competition in the AI Industry
While the cost of many AI models has decreased, cutting-edge performance remains expensive, with new models like Anthropic’s Claude Opus 4 priced at $15 per million input tokens and $75 per million output tokens. The competitive landscape in the AI industry has led to increased pricing, with tools like Replit also experiencing unexpected cost hikes for users.
Cursor, a leading AI product in the market, has garnered over $500 million in ARR mainly through its Pro plan subscriptions. However, the company faces escalating competition from AI providers like Anthropic, which recently launched Claude Code, a successful AI coding tool for enterprises.
To maintain its position in the market, Cursor needs to continue collaborating with top-tier model providers while exploring ways to affordably integrate their more expensive AI models. In response, Anysphere has secured multi-year agreements with key players like OpenAI, Anthropic, Google, and xAI to offer a premium $200-a-month Cursor Ultra plan with high rate limits.
As the tension between Cursor and AI model developers intensifies, the future of AI coding tools and their pricing structures remains uncertain.
