Cursor has unveiled its significant 0.50 update on May 9, 2025, bringing major improvements to its AI-powered coding environment. The release focuses on three core areas: simplified pricing structures, enhanced coding efficiency tools, and expanded project management capabilities.

Pricing Revolution: One System Fits All Gone are the complex tiered plans. Cursor now offers a unified request-based billing system across its Pro and Business subscriptions. Users get 500 fast monthly requests, with options to switch to pay-as-you-go or continue with slower processing when limits are reached. The Max mode introduces token-based billing for handling large contexts, supporting premium AI models like Claude3.7Sonnet and GPT-4o.

Coding at Warp Speed The update delivers several productivity boosters:

• Tab Model: Enables cross-file refactoring with syntax highlighting for clearer code navigation
• Background Agents: Run multiple AI tasks simultaneously (currently in beta)
• Multi-root Workspaces: Manage several repositories in one interface - ideal for microservices
• Inline Editing: New shortcuts (⌘⇧⏎ for full-file edits, ⌘L for agent delegation) speed up workflows

Developers working with lengthy files gain search-and-replace tools that reportedly cut editing time by 30%. The enhanced chat function now allows Markdown exports and easy sharing of AI conversations.

Competitive Landscape Heats Up Cursor's release comes as rivals like Windsurf adjust their pricing strategies. While maintaining its $20/month Pro plan, Cursor differentiates with SOC2-compliant privacy features and advanced capabilities like parallel agents. The company recently secured $100 million in Series B funding at a $2.6 billion valuation, signaling strong market confidence.

Will these upgrades help Cursor challenge GitHub Copilot's dominance? Early user feedback praises the improved responsiveness, particularly when handling complex dependencies across multiple files.

Key Points

1. Simplified pricing replaces complex tiers with request-based billing
2. New Tab model enables smarter cross-file code refactoring
3. Background agents allow parallel AI task processing (beta)
4. Multi-root workspaces streamline management of multiple repositories
5. Maintains $20/month Pro plan amid competitor price hikes