Cursor Faces Backlash Over Pricing Changes, CEO Apologizes

Controversial Pricing Model Update

Cursor, developed by Anysphere, recently faced significant user dissatisfaction following an update to its Pro plan pricing structure. The $20/month plan previously offered 500 fast AI responses followed by unlimited slower ones. However, the new model allocates a $20 monthly credit for API-based usage, after which users must purchase additional credits. Only the "Auto Mode" remains unlimited for Pro subscribers.

Many users reported exhausting their quotas quickly, especially when using Anthropic's Claude model, popular for programming tasks. Some were unexpectedly charged extra fees due to unclear communication about spending caps.

CEO's Response and Refunds

Anysphere CEO Michael Truell publicly apologized, calling the company's communication "not good enough." The firm pledged to:

• Refund all unexpected charges
• Improve transparency in future pricing changes
• Maintain better user communication

Truell explained the change was necessary as newer AI models consume more tokens for complex tasks, increasing operational costs previously borne by Cursor.

Rising Costs in AI Development Tools

The incident highlights broader challenges in the AI coding tools market:

• Advanced models like Claude Opus4 remain expensive ($15/$75 per million tokens)
• Providers now charge enterprises for priority access
• Development costs continue rising despite some price reductions

Intensifying Market Competition

Cursor faces growing competition from:

• Claude Code (Anthropic's new programming tool)
• Other AI providers expanding into development tools The company recently hired two Anthropic engineers and launched a premium $200/month Ultra plan with higher rate limits.

Key Points

• Cursor changed its Pro plan pricing without clear communication
• Users faced unexpected charges and quick quota exhaustion
• CEO apologized and promised refunds for affected customers
• Rising AI model costs driving pricing changes across industry
• Intense competition emerging in AI coding tools market