When we first started, Cursor pricing was pretty simple: 500 fast requests per month + unlimited slow requests. 1 chat message was 1 request. Simple and straightforward.
This means that you could potentially spend hundreds or thousands of dollars on AI and only pay $20 for it. It looks to me that Cursor has been burning investor money and have give us free tokens at their own loss and made the value for Cursor incredible.
Now, looks like that is changing. Cursor has changed the pricing model like 3 or 4 times (can't keep count) during the last few months and at least now it seems we are converging to "API costs + markdown". Basically, if you want more, pay more.
Bad news here is we probably need to pay more.
The good news (as I see it) are:
- With this model, Cursor might actually be sustainable and stick around for the long haul, not just burn through investor money and go bankrupt.
- OpenAI has lowered their pricing a lot so for example with GPT-5, we should still get a lot of code written with just the $20 (or more if you are on those plans).
- This means better incentives for Cursor: now they can just make the best AI IDE without having to figure out cheap tricks to get their own costs down (chunking, limiting the context, etc)