Cursor
The most popular AI-native code editor on the market — and one whose 2025 billing switch cut the same $20 plan's effective request count nearly in half, badly enough that the CEO publicly apologized.
What is Cursor?
Cursor, built by Anysphere (founded by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger with early seed backing from the OpenAI Startup Fund), is an AI-native code editor built as a fork of VS Code, now used by more than 500,000 developers with a 180,000+ member r/cursor community. Rather than running its own model, it routes requests to foundation models from OpenAI, Anthropic, and Google — Claude 4.x (including Opus), GPT-5.2, Gemini 2.5, and o1-class reasoning models are all selectable per task. Composer handles multi-file edits, Agent mode runs background, multi-step tasks autonomously, Tab completion predicts your next edit based on recent changes, and it includes native MCP support plus in-editor pull request review. Bugbot, a separate AI code-review product, adds automated PR feedback on top. It's genuinely accessible beyond professional developers too — Cloudflare's VP of developer relations shared that his eight-year-old daughter built a working chatbot in just 45 minutes using Cursor, a small but telling anecdote about how far AI-assisted coding has lowered the barrier to entry.
The important, well-documented thing worth understanding clearly before subscribing: in June 2025, Cursor replaced its original fixed-request billing (Pro included 500 fast premium requests per month) with usage-based, credit-pegged billing tied to actual model API cost. The honest, widely-reported problem was execution: the rollout was rushed and poorly communicated, and it effectively cut the real-world request count at the same $20 price point from 500 down to roughly 225 — a meaningful reduction in value for the same money that triggered real backlash across the developer community. Cursor's CEO issued a public apology over how the change was handled, and a portion of users migrated to Windsurf (then $15/month) as a direct result. Since then, pricing has continued to evolve: Cursor updated its Teams plan again in June 2026, and the company itself estimates the changes lower costs for roughly 90% of teams — a genuinely positive, more recent development worth weighing against the 2025 history. When your credit pool runs out today, you can fall back to Auto mode (still functional at no extra cost) or set a spend limit to pay overage at API rates, with a grace period before payment is required.
The June 2025 billing controversy, CEO apology, and effective request-count reduction are corroborated across multiple independent sources (AI Tool Discovery, Flexprice, No Code MBA). The June 2026 Teams pricing improvement is drawn from an independent 2026 pricing analysis (OpsLyft). Company background and the Cloudflare anecdote are drawn from daily.dev's 2026 review.
Key features
Composer
Applies AI-driven edits across multiple files simultaneously.
Agent mode
Runs autonomous, multi-step background tasks across your codebase.
Tab completion
Predicts your next edit based on recent changes, not just the current line.
Multi-model access
Choose Claude, GPT, or Gemini per task, or let Auto mode pick a cost-efficient model.
Native MCP support
Connects directly to Model Context Protocol servers and tools.
Bugbot
A separate, dedicated AI code review add-on for pull requests.
Pricing
Hobby
- Basic chat, full editor access without usage limits on the core interface
- Good for evaluating the tool before committing
- Limits reset monthly
Pro
- Unlimited Tab completions, priority response times
- Auto mode remains free once credits run out
- Optional spend limit for pay-as-you-go overage
Pro+ / Ultra / Teams
- Teams: shared chats/commands/rules, SSO, centralized billing
- Teams pricing improved June 2026 — cheaper for ~90% of teams
- Enterprise: custom, contact sales for compliance/audit needs
Annual billing saves roughly 20% across paid tiers. Actual cost depends heavily on which models you select — heavier models and longer contexts consume credits faster. Prices reflect Cursor's published pricing as of July 2026.
Available models
Integrations & platforms
Pros, cons & best for
Pros
- Genuine multi-model flexibility across Claude, GPT, and Gemini
- Widely regarded as one of the most productive AI coding tools available
- Auto mode provides a genuine free fallback once paid credits run out
Cons
- 2025's rushed billing change reduced real value at the same price point
- Actual cost varies significantly by model choice, making budgeting harder
- Costs roughly double GitHub Copilot's base Pro tier at $20 vs $10
Best for
- Developers wanting multi-model flexibility and deep agentic capability
- Teams needing full codebase-aware context across multi-file changes
- Not the pick if predictable, flat monthly costs matter more than model choice
Take a look inside
Alternatives
For deep GitHub integration or a terminal-first agentic workflow instead:
Our verdict
Cursor's technical reputation is genuinely well-earned — multi-model flexibility, deep codebase awareness, and strong agentic features have made it one of the most consistently praised AI coding tools on the market, and the community size backs that up. The honest scar on its history is real: the rushed, poorly-communicated 2025 shift to credit-based billing effectively delivered less for the same $20, prompted a public CEO apology, and pushed some users toward competitors. The good news is that the trajectory since has been more positive — the June 2026 Teams pricing update is a genuine improvement for most teams, and the current Auto-mode fallback softens the sting of running out of credits. For developers who value model flexibility over strict cost predictability, it remains a top-tier choice; for anyone burned by the 2025 transition, it's worth re-evaluating the current pricing with fresh eyes rather than assuming nothing's changed.
FAQ
What happened with Cursor's pricing in 2025?
In June 2025, Cursor replaced its fixed 500-request Pro plan with usage-based credit billing. The rollout was rushed and poorly communicated, effectively cutting the real request count at the same $20 price to roughly 225, and the CEO issued a public apology over how it was handled.
Has Cursor's pricing improved since the 2025 controversy?
Yes, notably — Cursor updated its Teams plan again in June 2026, with the company estimating the changes lower costs for around 90% of teams, a genuinely positive shift from the 2025 rollout.
What happens when I run out of Cursor credits?
You can switch to Auto mode, which remains functional at no extra cost, or enable a spend limit to pay for additional usage at API rates — Cursor provides a grace period before requiring payment.
Is Cursor more expensive than GitHub Copilot?
At the base Pro tier, yes — Cursor Pro is $20/month versus Copilot Pro at $10/month, a common point of debate in developer communities, though the two products differ meaningfully in model flexibility and integration approach.
Does Cursor run its own AI model?
No, it routes requests to foundation models from OpenAI, Anthropic, and Google — Claude 4.x, GPT-5.2, and Gemini 2.5 are all selectable per task rather than Cursor training its own model.
What is Bugbot?
A separate, dedicated AI code review product from Cursor focused on automated pull request feedback, sold as an add-on alongside the core editor.