Cursor, a popular AI tool used by developers, is facing backlash after changing how its Pro plan works — and not explaining it clearly.
The result? Surprise charges, confusion, and a wave of user complaints online.
Now, Michael Truell, CEO of Cursor’s parent company Anysphere, is apologizing and promising to make things right.
What Happened?
Back on June 16, Cursor made changes to its $20/month Pro subscription. But many users say they didn’t fully understand what changed — and ended up paying more than expected.
Here’s what the plan used to be:
- You’d get 500 fast responses from advanced AI models like OpenAI, Anthropic, and Google.
- After that, you could still use Cursor — just at a slower speed, for unlimited requests.
Now, under the new system:
- You get $20 worth of usage per month, based on how much your chosen AI model costs.
- Once that $20 is gone, you either stop using it, or pay extra (unless you set a spending limit in advance).
And that’s where the trouble started.
Why People Got Upset
Many Cursor users didn’t realize that they could go over the $20 cap — or that using powerful models like Claude (from Anthropic) would eat up their balance very quickly.
Some said they were charged unexpected fees, while others ran out of usage just after a few coding prompts.
Worse, users say the company didn’t clearly explain how the new system worked.
In a blog post, CEO Michael Truell wrote:
“We recognize that we didn’t handle this pricing rollout well and we’re sorry. Our communication was not clear enough and came as a surprise to many of you.”
How Is Cursor Responding?
To try and fix the situation, Anysphere says it will:
- Refund users who were unexpectedly charged
- Improve communication about future pricing updates
The company hasn’t shared full details beyond the blog post, but users are hoping for more transparency moving forward.
Why Did They Change the Plan?
According to Truell, newer AI models are getting more powerful, but also more expensive. That’s because they often process huge amounts of data (called “tokens”) when solving longer or more complex tasks.
In the old pricing model, Cursor was paying those costs out of pocket. But with more people using models like Claude and Google Gemini, it became too expensive to keep that up.
Now, those costs are passed to users — like many other tools in the AI space are starting to do.
This Isn’t Just a Cursor Problem
Cursor isn’t the only AI tool raising prices or changing how things work.
Replit, another popular coding platform, recently made similar pricing changes that caught users off guard. Meanwhile, big model providers like Anthropic and OpenAI are charging extra for premium access to faster, more reliable performance.
Even though many AI tools have dropped their base prices, the most advanced models remain expensive — especially when used at scale.
For example:
- Claude Opus 4 (Anthropic’s top model) costs about $15 per million input tokens, and a whopping $75 per million output tokens.
- Gemini 2.5 Pro from Google is also one of the priciest options on the market.
So when developers rely on these tools for everyday coding tasks, the costs add up quickly.
Cursor Is Still Growing — But Faces New Pressure
Despite the complaints, Cursor is still one of the biggest AI-powered tools out there. The company reportedly brings in over $500 million a year, mostly from Pro subscriptions.
But now, it’s feeling the heat from direct competitors — including Anthropic, whose own tool, Claude Code, has been gaining traction with enterprise users. Claude Code helped boost Anthropic’s revenue to $4 billion and likely pulled users away from Cursor in the process.
Interestingly, Cursor recently hired two former Claude Code engineers to work on its product — showing it’s serious about staying competitive.
What’s Coming Next?
Cursor isn’t backing down. In fact, it’s doubling down.
Anysphere has signed long-term deals with OpenAI, Anthropic, Google, and Elon Musk’s xAI to ensure it has access to top models. It also launched a new Cursor Ultra plan at $200/month, designed for heavy users who need high limits and fast performance.
Anthropic’s co-founder Jared Kaplan even said he still plans to work closely with Cursor in the future.
But behind the scenes, the tension is growing. Cursor depends on these AI companies for their models — and they’re all building their own tools that compete directly with Cursor.
It’s a tricky position to be in.
TL;DR – Key Points
- Cursor changed how its Pro plan works, switching from unlimited use to usage-based billing.
- Many users were confused and ended up with unexpected charges.
- CEO Michael Truell apologized and promised refunds and clearer communication.
- Rising model costs are making AI tools more expensive to run — not just for Cursor, but across the board.
- Cursor is growing fast but facing new competition from the very companies it relies on.
Final Word
At the end of the day, Cursor’s pricing misstep is a reminder that even great products can run into trouble when communication breaks down.
The good news? The company admitted its mistake and is taking steps to fix it. That kind of response builds trust — and in the fast-moving world of AI tools, trust goes a long way.