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[1]
Anysphere launches a $200-a-month Cursor AI coding subscription
Anysphere launched a new $200-a-month subscription plan for its popular AI coding tool, Cursor, the company announced in a blog post on Monday. The new plan, Ultra, offers users 20x more usage on AI models from OpenAI, Anthropic, Google DeepMind, and xAI compared to the company's $20-a-month subscription plan, Pro. Anysphere also says Cursor users on the Ultra plan will get priority access to new features. Anysphere CEO Michael Truell said in a blog that the Ultra plan was made possible through multi-year partnerships with AI model providers. In the last several months, OpenAI, Anthropic, and Google DeepMind have similarly rolled out pricier subscription plans -- ranging from $100-a-month to $250-a-month -- as part of an effort to capitalize on their power users, and offer them increased usage. The new, pricy Cursor subscription plan seems poised to add revenue to Anysphere's already booming business. Earlier this month, Anysphere announced that Cursor had reached $500 million in annualized recurring revenue and is being used by major companies such as Nvidia, Uber, and Adobe. Anysphere was one of the fastest companies ever to reach $100 million in ARR, and it doesn't seem to be slowing down. Based on TechCrunch's previous reporting, Cursor's ARR has grown by $200 million since April. However, the race to develop "vibecoding" tools is heating up, and many of the AI model providers Cursor relies on are developing their own AI coding products. OpenAI has reportedly acquired Cursor's competitor, Windsurf, to beef up its offerings of AI coding products. Meanwhile, Anthropic continues to develop Claude Code, its in-house AI coding tool that utilizes its popular AI models. It's unclear whether Anysphere can sustain this level of growth without bumping into AI model providers. We've seen more competitive tactics emerge in the AI coding space as these businesses have grown. For example, Anthropic recently slashed Windsurf's direct access to Claude AI models as a means to undercut its largest competitor, OpenAI. At the same time, Anysphere has started putting more resources towards developing its own AI models that work alongside models from OpenAI and Anthropic. In May, Anysphere rolled out a new "Tab" AI model, which can suggest code changes across various files. In a recent interview with TechCrunch, Anthropic co-founder Jared Kaplan said he believed Anthropic would be working with Cursor for a long time. Anysphere's multi-year partnerships with Anthropic and other AI model providers certainly suggest these relationships aren't going anywhere just yet. Nonetheless, the competition for users is getting more intense.
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Cursor's New $200 Ultra Plan: Is There a Catch? | AIM
Cursor, the AI coding tool, has announced a $200/month 'Ultra' plan designed for power users, previously restricted by unpredictable usage caps. The plan promises 20x more usage than the Pro tier. The Ultra tier has been made possible by the company's "multi-year partnerships" with companies like OpenAI, Anthropic, Google, and xAI. Alongside the Ultra rollout, Cursor has also overhauled its Pro plan. It now defaults to an "unlimited-with-rate-limits" model, replacing the legacy 500-request allowance. Cursor described the shift as a response to user demand. As the developer of Cursor stated on Reddit, "This change was highly requested by power users seeking more predictability than usage-based pricing would offer." However, some long-time users aren't celebrating. Early reactions point to confusion around what's actually being offered and what's being taken away. In the absence of clear documentation on actual limits, developers are finding the new changes puzzling. Cursor's documentation clarifies that rate limits are based on compute usage, not request count. Each request's cost depends on the model selected, the message and file lengths, and the current session state. "Rate limits reset every few hours," Cursor notes, but there are two separate types, burst limits and local limits, each with its own refill frequency. A Cursor developer posted in the community forum, "We're able to offer limits high enough that very few people should ever see any rate limits to begin with." However, they also added that "using more expensive models will get you close to that rate limit faster." Cursor is still allowing users to stick with the old Pro model for now. "You're free to stick with legacy Pro Plan if you'd like!" the documentation reads. The Ultra plan, meanwhile, offers far more breathing room. But it comes at a steep cost, and with many of the same caveats around opaque compute budgeting. Cursor's promise of "predictable pricing" is only as strong as its transparency, something critics say is still lacking. For those who've already moved to the new Pro model, the transition hasn't been smooth. A Reddit user shared a story of unexpected limits: "I was automatically added to the new plan (rate-limits), and my 350 premium requests were gone in 20 Claude 4 prompts." The user reports exceeding their new request limit (660/500) and being forced into a slow mode. They express frustration at this situation and highlight their inability to revert to the previous plan. Cursor acknowledges that toggling between plans is still being refined. One developer responded on the forum, saying, "We're still working out the final details," and confirmed that new users will eventually be moved entirely to the updated plan. For now, older users should be able to switch between models for some time. Some users are also questioning the selective generosity in the Pro changes. One community member in the forum interpreted this option less charitably, and said, "I think this is a downgrade, and a hidden one at that." The member highlighted that it seems counterintuitive to retain the option for the 500-request plan, as the new changes effectively diminish functionality, likely leading to user dissatisfaction. "I don't believe in generous offers for Pro users," wrote the forum member. "Especially when cheap models like DeepSeek are being limited to 60k context per request." Cursor's approach may well be the start of a more structured future for AI-powered dev tools. However, transparency remains non-negotiable for users who value predictability. The company's bet on flexible rate-limiting hinges on how well it communicates and enforces its invisible ceilings. For now, the question isn't whether Ultra is worth $200; it's whether Pro still means what it used to.
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Anysphere launches $200/month Ultra plan for Cursor AI coding tool
Anysphere announced Monday the launch of its Ultra subscription plan for Cursor, its AI coding tool, at a price of $200 per month, according to a company blog post. The Ultra plan provides users with 20 times more usage on AI models from OpenAI, Anthropic, Google DeepMind, and xAI compared to the Pro plan, which costs $20 per month. Anysphere also stated that Ultra subscribers will receive priority access to new features. Anysphere CEO Michael Truell stated that multi-year partnerships with AI model providers enabled the creation of the Ultra plan. In recent months, OpenAI, Anthropic, and Google DeepMind have introduced pricier subscription plans, ranging from $100 to $250 per month, to capitalize on power users and offer increased usage. Earlier this month, Anysphere reported that Cursor had reached $500 million in annualized recurring revenue (ARR) and is used by companies like Nvidia, Uber, and Adobe. Cursor's ARR has grown by $200 million since April, according to previous reporting by TechCrunch. Anysphere was one of the fastest companies to reach $100 million in ARR. OpenAI has reportedly acquired Windsurf, a competitor of Cursor, to expand its AI coding product offerings. Meanwhile, Anthropic is developing Claude Code, its in-house AI coding tool, utilizing its AI models. Anysphere has started allocating more resources to developing its own AI models that work alongside models from OpenAI and Anthropic. In May, Anysphere introduced a new "Tab" AI model, which can suggest code changes across multiple files.
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Anysphere introduces a premium $200/month Ultra subscription for its Cursor AI coding tool, offering 20x more usage of advanced AI models and sparking discussions about the future of AI-powered development tools.
Anysphere, the company behind the popular AI coding tool Cursor, has launched a new $200-a-month subscription plan called Ultra. This premium offering provides users with 20 times more usage on AI models from leading providers such as OpenAI, Anthropic, Google DeepMind, and xAI compared to the existing $20-a-month Pro plan 12. The Ultra plan also promises priority access to new features for subscribers.
Cursor's growth has been remarkable, with the company recently announcing that it has reached $500 million in annualized recurring revenue (ARR) 13. This represents a significant increase of $200 million since April, solidifying Anysphere's position as one of the fastest companies to reach the $100 million ARR milestone 1. Major tech companies like Nvidia, Uber, and Adobe are among Cursor's user base, highlighting its widespread adoption in the industry.
The introduction of the Ultra plan was made possible through multi-year partnerships with AI model providers, according to Anysphere CEO Michael Truell 1. This move aligns with similar strategies employed by OpenAI, Anthropic, and Google DeepMind, who have also introduced higher-priced subscription plans ranging from $100 to $250 per month 13.
However, the AI coding tool landscape is becoming increasingly competitive. OpenAI has reportedly acquired Cursor's competitor, Windsurf, while Anthropic continues to develop its in-house AI coding tool, Claude Code 1. This heightened competition raises questions about the sustainability of Anysphere's growth and its relationships with AI model providers.
Alongside the Ultra plan launch, Cursor has overhauled its Pro plan, shifting to an "unlimited-with-rate-limits" model 2. This change replaces the previous 500-request allowance and aims to offer more predictability for power users. However, the transition has not been without challenges, as some users report confusion about the new limits and unexpected restrictions 2.
Source: Analytics India Magazine
The introduction of the Ultra plan and changes to the Pro tier have sparked discussions about transparency in AI-powered development tools. Users have expressed concerns about the lack of clear documentation on actual usage limits and the opaque nature of compute budgeting 2. This situation highlights the importance of clear communication and transparency in the evolving landscape of AI coding tools.
Source: TechCrunch
In response to the competitive environment, Anysphere has begun allocating more resources towards developing its own AI models. In May, the company introduced a new "Tab" AI model capable of suggesting code changes across multiple files 13. This move indicates Anysphere's efforts to diversify its offerings and reduce dependence on third-party AI models.
As the AI coding tool market continues to evolve, Anysphere's Ultra plan for Cursor represents a significant shift in the industry. The success of this premium offering and the company's ability to navigate the competitive landscape will likely shape the future of AI-powered development tools.
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