# Windsurf Cuts Prices in Response to Heated AI Coding Assistant Battle with Cursor

## Windsurf Cuts Prices in Response to Heated AI Coding Assistant Battle with Cursor

The AI coding assistant market is becoming increasingly competitive, and Windsurf is making a bold move to stay ahead. The startup announced on Monday that it is slashing prices “across the board,” promising “massive savings” for its users as its rivalry with Cursor intensifies.

Windsurf is simplifying its pricing structure by eliminating its complex “flow action credits” system, which previously charged developers for AI actions running in the background. The company is also reducing the cost of its team plans from $35 to $30 per user per month, and claims its enterprise plans are now “much cheaper.”

Rob Hou, a product marketer at Windsurf, took to X to declare that the company now boasts “BY FAR the best and most affordable pricing structure of all AI coding tools on the market,” attributing the change to optimizations in GPU usage. Hou also subtly criticized competitor plans priced at $20 a month, likely referencing Cursor’s individual monthly plan which starts at that price point, compared to Windsurf’s starting price of $15.

This pricing overhaul comes amidst reports that Windsurf is being eyed for acquisition by OpenAI for a staggering $3 billion. Meanwhile, Cursor’s creator, Anysphere, is reportedly in talks to raise funding at a $10 billion valuation. While both startups are experiencing significant growth, TechCrunch previously reported that Cursor currently generates around $300 million in ARR, dwarfing Windsurf’s $100 million. Interestingly, OpenAI initially showed interest in acquiring Cursor but shifted its focus to Windsurf, reportedly due to Cursor’s unwillingness to be acquired given its rapid expansion.

While Windsurf has remained tight-lipped regarding the OpenAI acquisition rumors, the company has been increasingly collaborating with the AI giant in recent weeks. Windsurf’s CEO, Varun Mohan, recently appeared in OpenAI’s launch video for its latest API model family. Moreover, as part of the pricing announcement, Windsurf is offering its users another week of free and unlimited access to OpenAI’s latest GPT-4.1 and o4-mini models.

The critical question now is whether Cursor will retaliate with its own price cuts, potentially sparking a price war that could impact the profitability and scaling capabilities of both startups.

Windsurf declined to comment for this article but stated in its announcement that it remains committed to its promise of passing savings back to its users, a commitment it claims to have upheld “from the very beginning.” Anysphere, the creator of Cursor, did not respond to a request for comment. The AI coding assistant arena is heating up, and developers are poised to benefit from the increased competition and resulting affordability.