Windsurf, a startup specializing in AI coding assistance, has announced a reduction in its prices across all services, highlighting significant savings for its users amid growing competition with its rival, Cursor. According to their statement on Monday, Windsurf is eliminating its complicated “flow action credits” system, which previously charged developers for background AI activities. Additionally, the company is reducing the cost of its team plans from $35 to $30 per user per month and making its enterprise plans less expensive.
Rob Hou, a product marketer at Windsurf, declared on the social media platform X that Windsurf now offers the most affordable pricing structure among AI coding tools on the market. He attributes this competitive pricing to improvements in the company’s GPU usage. Hou also critiqued the “confusing” pricing of rival plans, particularly pointing out Cursor’s individual monthly plan priced at $20, compared to Windsurf’s $15.
The changes in pricing occur amid reports that OpenAI is considering acquiring Windsurf for $3 billion. Meanwhile, Anysphere, the creator of Cursor, is in discussions to raise funds at a valuation of $10 billion. Windsurf is reportedly smaller than Cursor, generating approximately $100 million in annual recurring revenue (ARR) compared to Cursor’s $300 million. OpenAI had expressed initial interest in purchasing Cursor but decided against it due to Cursor’s rapid growth, making it unavailable for sale.
While Windsurf has not confirmed the acquisition discussions with OpenAI, the company has recently enhanced its public collaborations with them. As an example, Windsurf’s CEO, Varun Mohan, appeared in OpenAI’s recent launch video for its new API model family. As part of its new pricing strategy, Windsurf is also offering its users another week of free and unrestricted access to OpenAI’s latest GPT-4.1 and o4-mini models.
The situation now raises the possibility that Cursor might lower its own prices in reaction to Windsurf’s pricing adjustments. Such a move could potentially initiate a price war, complicating efforts for both startups to expand profitably.
Windsurf declined to provide comments for this article but reiterated in its announcement its ongoing commitment to delivering savings to its users. Anysphere, the creator of Cursor, did not respond to a request for comment.
