Cursor apologizes for confusing pricing changes that upset users

Cursor's CEO apologizes for unclear $20 plan, users caught off-guard.

: Michael Truell, CEO of Anysphere, issued an apology for unclear communication regarding changes to Cursor's $20-per-month Pro plan, which faced user backlash due to rising costs linked with AI model usage. The revised plan allocates $20 worth of monthly usage, with excess charges for overuse, leading to user dissatisfaction. Anysphere plans to refund affected users and seeks clarity in future communications. The adjustments are due to higher token consumption by newer, costly AI models used in the service.

Cursor’s parent company Anysphere has issued an apology after a backlash over confusing changes to its Pro plan pricing. On June 16, Cursor switched from a clear 500-request plan to a $20 usage cap based on underlying AI model rates. However, the change was rolled out with little explanation, and the “unlimited usage” marketing language caused users to assume there were no caps—leading to unexpected service cutoffs when users reached the $20 ceiling.

Users reported that the new system consumed credits far faster than expected, especially when using large-token models like Anthropic’s Claude. Many developers voiced frustration on Reddit and X, saying their usage allotments were exhausted within just a few days. The lack of visible spending limits and inadequate documentation further fueled dissatisfaction, with many feeling the platform misled them.

In response, Cursor updated its dashboard to show clear usage tracking, added spend caps to prevent overage, and began issuing refunds for affected users. It also revised its marketing to remove the misleading “unlimited” claim and clarified how usage is measured against the $20 threshold. CEO Michael Truell acknowledged the mistakes in a blog post, promising better transparency going forward.

Despite these efforts, the controversy has led to a wave of cancellations and developers switching to alternatives like Claude Code and Windsurf. Critics argue that Cursor failed to align its product messaging with its actual pricing mechanics, resulting in a breakdown of user trust. Discussions across developer forums suggest a lasting dent in reputation, even if the technical product remains strong.

This situation underscores the challenges tech companies face when shifting pricing models, especially in rapidly evolving AI markets. As usage costs depend on backend model rates, clear communication and user education are essential. Cursor’s changes may help stabilize the situation, but the long-term impact on user loyalty remains uncertain.

Sources: TechCrunch, Cursor Blog

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