AI coding assistant startup Windsurf announced on Monday that it has reduced its prices “across the board,” offering “massive savings” to its users as competition with its rival Cursor increases.
Windsurf declared its plan to eliminate the complicated system of “flow action credits,” which previously charged developers for background actions performed by its AI. Additionally, the company has lowered the cost of its team plans from $35 to $30 per user per month and made its enterprise plans significantly cheaper.
Rob Hou, Windsurf’s product marketer, stated on the social media platform X that Windsurf now offers “BY FAR the best and most affordable pricing structure of all AI coding tools on the market.” He attributed this competitive pricing to Windsurf optimizing its GPU usage. Hou also criticized competitor plans priced at $20 a month, referring to Cursor’s individual monthly plan, which starts at $20 compared to Windsurf’s $15.
This pricing revision occurs amid reports that Windsurf is a potential acquisition target for OpenAI for $3 billion. In contrast, Cursor’s creator, Anysphere, is reportedly looking to raise funds valued at $10 billion. TechCrunch previously reported that Windsurf generates approximately $100 million in annual recurring revenue, making it the smaller of the two startups when compared to Cursor’s $300 million. OpenAI initially considered purchasing Cursor but opted for the rapidly growing Windsurf instead.
Although Windsurf has not confirmed reports regarding its acquisition by OpenAI, it has recently increased its public collaborations with the tech giant. For instance, Varun Mohan, Windsurf’s CEO, appeared in OpenAI’s launch video for its latest API model family. As part of the pricing change announcement, Windsurf is offering its users another week of free and unlimited access to OpenAI’s latest GPT-4.1 and o4-mini models.
It remains to be seen whether Cursor will respond by reducing its prices following Windsurf’s revamp, which could potentially lead to a price war and complicate profitability for both startups.
Windsurf, which chose not to comment for this article, stated in its announcement that it continues to fulfill its initial commitment of passing savings back to its users. Anysphere, the creator of Cursor, did not respond to a request for comment.
