AI coding assistant startup Windsurf lower its costs “throughout the board” it introduced on Monday, touting “large financial savings” for its customers as competitors with its rival Cursor intensifies.
Windsurf stated it’s eliminating its advanced system of “circulation motion credit,” which charged builders for actions its AI did within the background. It’s additionally slicing costs for its crew plans to $30 per person per thirty days 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 the very best and most inexpensive pricing construction of all AI coding instruments available on the market,” 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, but it surely’s rising so rapidly that it’s not available in the market to be bought.
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 slicing its personal costs in response to Windsurf’s revamp. That may danger a value warfare, 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.
