AI coding assistant startup Windsurf lower its costs “throughout the board” it introduced on Monday, touting “huge financial savings” for its customers as competitors with its rival Cursor intensifies.
Windsurf stated it’s eliminating its complicated system of “stream motion credit,” which charged builders for actions its AI did within the background. It’s additionally reducing costs for its group plans to $30 per person monthly down from $35, whereas making its enterprise plans “less expensive,” per the announcement.
Windsurf product marketer Rob Hou proclaimed on X that Windsurf now has “BY FAR one of the best and most inexpensive pricing construction of all AI coding instruments in the marketplace,” crediting this to Windsurf optimizing its GPU utilization.
Hou criticized “complicated” competitor plans priced at $20 a month in an obvious dig at Cursor’s particular person month-to-month plan, which begins at $20 in comparison with Windsurf’s $15.
The pricing overhaul comes as Windsurf is reportedly being thought of for an acquisition by OpenAI for $3 billion (Cursor’s creator Anysphere is in talks to boost at a $10 billion valuation). As TechCrunch beforehand reported, Windsurf is the smaller of the 2 coding assistant startups, producing about $100 million in ARR in comparison with Cursor’s $300 million. OpenAI initially wished to purchase Cursor, nevertheless it’s rising so shortly that it’s not out there to be offered.
Though Windsurf hasn’t confirmed the OpenAI acquisition stories, it has not too long ago stepped up its public collaborations with OpenAI.
For instance, Windsurf’s CEO Varun Mohan appeared earlier this month in OpenAI’s launch video for its newest API mannequin household. And as a part of the pricing change announcement, Windsurf is lavishing its customers with one other week of free and limitless utilization of OpenAI’s newest GPT-4.1 and o4-mini fashions.
The large query is whether or not Cursor finally ends up reducing its personal costs in response to Windsurf’s revamp. That may danger a value struggle, making it more durable for each startups to scale up profitably.
Windsurf, which declined to remark for this text, stated in its announcement that it’s persevering with to ship on its promise “from the very starting” to go financial savings again to its customers.
Cursor creator Anysphere didn’t reply to a request for remark.
