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Windsurf, a startup focused on AI-powered coding assistants, revealed sweeping price reductions on Monday as competition against Cursor heats up. With this update, the company eliminated its previous “flow action credits” scheme, simplifying the experience for developers who had been charged for background AI activities.
The updated pricing drops team plans to $30 per user per month from $35, and lowers enterprise costs as well. Windsurf representatives are touting these changes as “by far the best and most affordable,” crediting streamlined GPU operations.
Windsurf openly compared its new $15 monthly rate to Cursor’s $20, calling rival pricing confusing in a clear challenge. These bold changes arrive as rumors circulate that Windsurf is under consideration for a $3 billion acquisition by OpenAI.
OpenAI Adds Pressure Amid Intense Market Rivalry
Cursor parent Anysphere is currently discussing a new funding round that could value it at $10 billion, well ahead of Windsurf, which reports annual recurring revenue near $100 million, while Cursor reaches $300 million. Although OpenAI previously explored acquiring Cursor, that company’s rapid growth means it remains independent for now.
Windsurf has increased its collaboration with OpenAI, highlighted by CEO Varun Mohan’s appearance in a video unveiling OpenAI’s newest API models. To accompany its pricing overhaul, Windsurf is providing users another week of free, unlimited access to both GPT-4.1 and the o4-mini models from OpenAI.
Speculation is now swirling over whether Cursor might lower its own user costs in response to Windsurf’s drastic changes. Such a move could ignite a price war, squeezing profit margins and threatening future growth for both companies.
Windsurf maintains that these price cuts reflect its longstanding goal of passing value directly to customers. Competitors did not immediately address the new developments or disclose any plans to counter Windsurf’s aggressive reduction strategy.
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