News

Cursor Responds to User Backlash After Sudden Pricing Changes

Cansin Cengiz

07 Jul 2025 — 2 min read

Cursor Responds to User Backlash After Sudden Pricing Changes

The CEO of Anysphere, the company behind the widely-used AI coding environment Cursor, has issued an apology following a wave of user complaints about recent changes to the platform’s Pro plan pricing. The update, which shifted from a simple $20/month unlimited model to a usage-based system, caught many subscribers off guard and led to unexpected additional charges.

What Changed in Cursor’s Pro Plan?

On June 16, Cursor transitioned its Pro plan from offering 500 fast AI responses per month (from leading providers like OpenAI, Anthropic, and Google) with unlimited slower responses, to a model where users receive $20 worth of usage, calculated at API rates. Once users reach this limit, they must purchase extra credits to continue using advanced features. Only Cursor’s “auto mode” remains unlimited under the new plan.

User Frustration and Company Response

The pricing shift quickly sparked criticism on social media. Many developers reported running out of requests after just a few prompts—especially when using resource-intensive models like Anthropic’s Claude. Others were surprised by unexpected charges, not realizing extra usage beyond the $20 cap would cost more unless a spend limit was set.

In response, CEO Michael Truell publicly apologized for the lack of clear communication, acknowledging the rollout had been mishandled and promising refunds to affected users. Anysphere stated it would prioritize clearer communications for future updates.

Why Did the Pricing Model Change?

The main driver behind the update is the rising cost of running powerful AI models. Newer models, such as Anthropic’s Claude Opus 4 and Google’s Gemini 2.5 Pro, are significantly more expensive due to their higher token consumption and computational demands. Rather than absorbing these costs, Cursor is now passing them on to users, aligning with broader industry trends. Other AI coding tools, like Replit, have also recently increased prices for large-scale tasks.

Cursor’s Position in a Competitive Market

Despite boasting over $500 million in annual recurring revenue, Cursor faces tough competition—not just from other platforms, but also from the AI providers it depends on. Anthropic’s enterprise-focused Claude Code tool, for example, has quickly gained traction, reportedly boosting Anthropic’s ARR to $4 billion and attracting some Cursor users.

To maintain its edge, Anysphere has struck multi-year deals with OpenAI, Anthropic, Google, and xAI. The company recently launched a $200/month Ultra plan with much higher rate limits for power users. Cursor is also investing in developing its own proprietary AI models to reduce dependence on external providers in the future.

The Road Ahead

Cursor’s recent misstep highlights a broader challenge facing AI-powered developer tools: balancing access to cutting-edge models with sustainable pricing. As the cost of advanced AI remains high, transparency and communication will be crucial for platforms aiming to keep their developer communities engaged and satisfied.