Windsurf, a startup known for its AI coding assistant, has announced significant price cuts for its users. The company revealed it is dropping its complicated “flow action credits” system and lowering the cost of its team plan from $35 to $30 per user each month. Enterprise plans are also now cheaper, making Windsurf’s offer one of the most competitive in the AI coding assistant market. The company claims its new pricing model is the most affordable, with individual plans now at $15 per month, undercutting main rival Cursor, which charges $20.
This pricing change comes at a time when competition between Windsurf and Cursor is heating up. Windsurf’s product marketer, Rob Hou, credited the price reduction to improved GPU efficiency. He also criticised competitors for having confusing pricing plans. Cursor, made by Anysphere, has been gaining traction, but Windsurf is hoping that its simpler and lower pricing will attract more developers.
There is speculation that OpenAI is considering acquiring Windsurf for $3 billion, though Windsurf has not confirmed this. In contrast, Cursor’s parent company Anysphere is reported to be in talks to raise money at a $10 billion valuation. Windsurf has recently appeared in OpenAI’s events, signalling a closer partnership. To mark the new pricing, Windsurf is giving users an extra week of free and unlimited access to OpenAI’s latest models, GPT-4.1 and o4-mini.
The current moves are intensifying pressure on Cursor to respond, possibly by reducing its own prices. If both companies cut prices further, it could start a price war that may impact their long-term profits. Windsurf says it remains committed to passing savings on to users, which has been a key promise since its launch.
For now, Windsurf’s latest pricing update could shift the balance in the competitive AI coding assistant market, as users weigh affordability, features, and company backing. Cursor has not commented on Windsurf’s move, leaving the next steps in this rivalry uncertain.
READ ALSO: OpenAI approaches Cursor before going into discussions to buy Windsurf for $3B
