MOUNTAIN VIEW, Calif., April 24, 2025 — AI coding startup Windsurf has enacted sweeping price cuts across its services, it announced Monday, intensifying its battle with rival Cursor amid mounting acquisition speculation involving OpenAI.

Windsurf’s pricing overhaul begins with the elimination of its convoluted “flow action credits” system, which previously billed developers for background AI tasks. Effective immediately, team plans drop to $30 per user per month, down from $35, while enterprise offerings are now “much cheaper,” though exact figures were not disclosed.

“This is by far the best and most affordable pricing structure of all AI coding tools on the market,” declared Windsurf’s product marketer Rob Hou on X. He attributed the changes to improved GPU optimization, taking a swipe at what he called “confusing” competitor pricing—an implicit reference to Cursor’s $20 monthly individual plan, compared to Windsurf’s $15.

The price cut signals a bold maneuver as Windsurf, currently generating $100 million in annual recurring revenue, finds itself in the shadow of Cursor’s $300 million. Cursor’s parent firm, Anysphere, is reportedly in fundraising talks at a $10 billion valuation. Windsurf, meanwhile, is said to be under consideration for a $3 billion acquisition by OpenAI—rumors the company has yet to confirm.

Notably, Windsurf’s CEO Varun Mohan appeared this month in OpenAI’s latest API model family launch video, a move underscoring deepening ties. To sweeten the deal following its pricing announcement, Windsurf is offering users another week of unrestricted access to OpenAI’s GPT-4.1 and o4-mini models.

Cursor, which did not comment on the developments, now faces pressure to respond—possibly triggering a full-blown price war that could jeopardize long-term profitability for both firms.

While Windsurf declined to be interviewed for this story, its official release reiterated the company’s founding commitment — to return savings to users whenever possible. As the AI coding space consolidates and competition escalates, the efficacy—and sustainability—of that promise remains to be seen.