Windsurf has dropped its prices to compete more aggressively with rival AI coding assistant, Cursor. On Monday, the startup announced major price cuts and a simpler pricing model for developers.
The company has removed its old “flow action credit” system. This system charged users for background actions performed by its AI. Now, Windsurf is switching to a flat pricing model that’s easier to understand.
Team plans are now $30 per user per month, down from $35. Enterprise plans are also getting cheaper, though the exact numbers weren’t shared.
Windsurf’s product marketer Rob Hou posted on X that the company now offers “BY FAR the best and most affordable pricing structure” among AI coding tools. He credited this drop to better GPU optimization. Hou also criticized the $20 per month plans offered by Cursor, saying they’re “confusing.” Windsurf’s own individual plan costs just $15.
The timing of these changes is interesting. Windsurf is rumored to be in talks for a $3 billion acquisition by OpenAI. Meanwhile, Cursor’s creator, Anysphere, is reportedly raising money at a $10 billion valuation.
Cursor currently generates around $300 million in annual recurring revenue. Windsurf trails with about $100 million, but it’s gaining traction—especially through its closer ties with OpenAI.
Earlier this month, Windsurf CEO Varun Mohan appeared in OpenAI’s launch video for its latest API model. To celebrate the pricing update, Windsurf is also giving users free access to OpenAI’s newest models, GPT-4.1 and o4-mini, for another full week.
With these moves, Windsurf is doubling down on affordability. The bigger question now: will Cursor respond with a price cut of its own?
That could spark a pricing war—one that may drive growth but also pressure both companies to stay profitable.
Windsurf hasn’t confirmed any acquisition plans yet. But the company says it’s committed to passing savings back to users, staying true to its original promise.
Anysphere has not yet commented on the situation.
