Cursor, a leading provider of AI-powered productivity tools, has issued a formal clarification to its users after recent changes to its Pro plan pricing led to widespread confusion and frustration. The company has pledged to refund any unexpected charges incurred by customers and outlined steps to improve transparency and communication going forward.

Timeline of Events: How the Pricing Changes Unfolded

• June 16: Cursor released an update introducing changes to its Pro plan and launching a new Ultra tier. The team's plans remained unchanged.
• June 30: After receiving feedback, Cursor updated its original announcement and pricing page to clarify the new structure.
• July 4: Cursor published a detailed apology, acknowledging missteps and providing additional information.

Understanding the New Cursor Pro Plan

The updated Cursor Pro plan now offers:

• Unlimited usage of Tab and models when using the “Auto” mode.
• $20 monthly credit for usage of advanced “frontier” models, billed at API rates.
• Option to purchase additional usage at cost once the included credit is exhausted.

Cursor clarified that what was previously described as “rate limits” is actually a monthly usage credit pool. Once users reach their credit limit, a short grace period is provided before additional charges apply. Users can also set a spending limit to control extra costs.

Why Did Cursor Change Its Pricing Model?

Cursor relies on a mix of proprietary AI models and third-party providers like OpenAI, Anthropic, Google, and xAI. Previously, users were charged based on the number of requests, with a cap of 500 requests per month and varying costs for different models.

However, as newer models can process more data per request—sometimes at significantly higher costs—Cursor shifted to an API-based pricing system with a $20 monthly usage credit. This approach better reflects the actual costs of running complex AI tasks.

The company admitted that its initial communication failed to make clear that “unlimited usage” applied only to Auto mode, while other models were subject to the $20 monthly credit.

What Does the Pro Plan Cover?

According to Cursor, the current Pro plan typically includes:

• About 225 Sonnet 4 requests
• 550 Gemini requests
• 650 GPT 4.1 requests

The vast majority of Pro users do not exceed their included monthly usage.

Cursor Admits Mistakes and Offers Refunds

Cursor acknowledged that its rollout of the new pricing was poorly handled, catching many users off guard. The company has committed to issuing full refunds for any unexpected charges incurred between June 16 and July 4. Affected users are encouraged to contact [email protected] for prompt assistance.

What’s Next: Improved Communication and User Support

Cursor has promised to:

• Provide advance notice of future pricing changes
• Offer clearer documentation
• Enhance dashboard visibility so users can better track their usage and avoid surprises

The company has already updated its pricing page and documentation, with more improvements expected in the coming weeks.

Cursor’s handling of its recent pricing changes serves as a reminder of the importance of clear communication in the fast-evolving AI landscape. By taking responsibility, offering refunds, and committing to greater transparency, Cursor aims to rebuild trust and ensure a better experience for its users moving forward.