AI coding assistant startup Windsurf has announced a major pricing overhaul, cutting costs “across the board” to offer what it calls “massive savings” for developers. The move comes amid rising competition with its chief rival, Cursor, and growing interest from OpenAI, which is reportedly considering a $3 billion acquisition of Windsurf.
Effective immediately, Windsurf is eliminating its previously complex “flow action credits” system, which charged users for background AI tasks. It’s also lowering its team plan pricing to $30 per user per month, down from $35, while making its enterprise plans significantly cheaper, though no specific figures were disclosed.
Rob Hou, a product marketer at Windsurf, claimed on X (formerly Twitter) that the startup now offers “BY FAR the best and most affordable pricing structure of all AI coding tools.” He attributed the change to backend optimizations in GPU usage. Hou also took a jab at competitors with “confusing” pricing—an apparent reference to Cursor’s $20 monthly plan—highlighting Windsurf’s more affordable $15 individual plan.
The price cuts come at a strategic moment. Cursor’s parent company, Anysphere, is reportedly pursuing a new funding round at a $10 billion valuation and has turned down acquisition offers, including one from OpenAI. Meanwhile, Windsurf, though smaller in comparison, has grown rapidly, reaching $100 million in annual recurring revenue (ARR). Cursor leads the space with $300 million ARR.
Windsurf has not confirmed any acquisition discussions but has become visibly closer to OpenAI in recent months. CEO Varun Mohan appeared in OpenAI’s recent API launch video, and the company is now offering free, unlimited access for one week to OpenAI’s GPT-4.1 and o4-mini models—a move seen as another step toward tighter collaboration.
The aggressive pricing update may pressure Cursor to lower its own prices, but such a move could ignite a price war that may strain both companies’ margins and slow their scaling efforts.
In its announcement, Windsurf emphasized its commitment to returning savings to customers, saying this was part of its original promise from the very beginning.
