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On Monday, an AI coding assistant startup announced a price cut across the board for Windsurf. The Windsurf price cut is seen as offering “massive savings” for its users as it continues to battle for supremacy with Cursor AI.
According to the announcement, Windsurf will eliminate its complex system of “flow action credits”. The FAC charged developers for actions its AI did in the background. The windsurf price cut also extends to its team’s plan. Consequently, Windsurf reduced the price to $30 per user per month, down from $35 per user. This development will further make its enterprise plans “much cheaper”, says the announcement.
Windsurf product marketer Rob Hou affirmed on X that Windsurf now offers the most affordable plans for AI coding tools. According to him, Windsurf is “BY FAR the best and most affordable pricing structure of all AI coding tools on the market.” He credited this to WindSurf’s optimization of its GPU usage.
Windsurf Price Cut and Cursor AI
Hou noted that competitor plans priced at $20 a month are apparently higher than Windsurf’s. Specifically, digging into Cursor’s monthly plan, which starts at $20, he noted that the Windsurf price cut is $15 for the same plan.
TechPolyp had earlier reported that OpenAI is eyeing the acquisition of Windsurf. Therefore, TechPolyp suggests that the Windsurf price cut aims to better position the company for OpenAI’s $3 billion bid. Meanwhile, Cursor’s creator, Anysphere, is in talks to raise at a $10 billion valuation. According to the previous report by TechPolyp, Windsurf is the smaller of the two coding assistant startups.
In the same vein, the former generates approximately $100 million in ARR, compared to Cursor’s $300 million. OpenAI originally wanted to buy Cursor, but its development is growing faster in value than in sales.
Windsurf has yet to confirm the reports of the OpenAI acquisition. However, it has recently increased its public collaborations with OpenAI. For instance, earlier this month, Windsurf’s CEO, Varun Mohan, appeared in OpenAI’s launch video for its latest API model family. Therefore, the Windsurf price cut is effective from today, offering its users an additional week of free and unlimited usage of OpenAI’s latest GPT-4.1 and O4-mini models.
The big question is whether Cursor will cut its prices in response to Windsurf’s revamp. That might risk a price war, making it harder for both startups to scale up profitably.
Windsurf announced that it will continue to deliver on its promise. It added that this will start “from the very beginning to pass savings back to its users”.