Is Cursor AI About to Die? (New Pricing Update)


Hey Reader,

The AI coding world is on fire right now.

Cursor, the tool everyone used to love, is suddenly in the midst of a sh*tstorm.

And honestly, most of the outrage isn't entirely unfounded...

Here's what actually happened (and what you need to know).

The $20 Dream Is Dead

For months, Cursor offered unlimited AI coding for $20/month.

500 fast requests. Unlimited slow requests. Pure joy.

But here's the thing everyone knew but nobody wanted to admit:

$20/month for unlimited AI was never sustainable.

Anyone who's used Claude API's directly knows these models cost serious money.

Cursor was basically bleeding VC cash to buy market share.

The New Reality

Three weeks ago, they changed everything.

The Pro mode for $20 was not unlimited anymore, and oh hey, there's a $200 ULTRA plan now.

Still unlimited usage in both. Sounds good, right?

Except... you no longer get to choose your favorite AI model to code.

Instead, you must use the "auto" mode, which is very hit and miss (unusable tbh).

Most users are pissed because they want unlimited Claude Sonnet/Opus specifically.

But that's like wanting unlimited poker chips for the price of slot machine spin.

The Numbers Don't Lie

So I upgraded to the $200/month Cursor Ultra plan.

It gives me "at least" $400/month in preferred model usage, so I tested it.

A full three hours of Claude Opus 4, the most expensive model, and...

I blasted through $156 of my included credits. 😂

Meanwhile, others on X mention that they could get over $800 of usage out of it.

So is this fair? In my opinion, yes, but...

What This Really Means

The free lunch is over.

Every AI tool will face this same reality eventually. The math just doesn't work.

Compute is heavily underpriced right now, and this will change soon.

But here's what's interesting...

Claude has their own coding tool with better pricing than anyone else.

Why? Because they make the models. They don't pay middleman fees.

So is Claude Code the better choice?

The Bottom Line

If you're serious about AI coding, you have two real options:

  1. Cursor Ultra - $200/month, better tooling, but usage limits
  2. Claude Max - $100-200/month, unlimited Claude Code access, fewer features

The $20 dream? It's never coming back.

Anyone promising unlimited AI for cheap is either lying or about to go bankrupt.

Sometimes the truth sucks, but it's still the truth.

Talk soon,
Rob

P.S. I made a full breakdown video diving deeper into this drama. The comment section is... spicy.

Robin Ebers

Coder of 20+ yrs turned creator now teaching AI & automation to founders. Every week, I send 1-2 emails with free prompts, tools and news. Guaranteed no spam.

Read more from Robin Ebers

Hey Reader, I just spent months testing every AI tool that matters. Thousands of dollars later, I found an AI stack that builds apps faster than anything I’ve ever used. Here’s what I currently use, and what you should be using too. My EXACT AI Tools Setup 1️⃣ AI Editors Cursor Ultra ($200/month) The best AI editor out there right now. I get a full suite of features and can see files being edited in real time. Claude Code Max 5x ($100/month) This is both a blessing and a curse. Best AI...

Hey Reader, Last week, something happened that should've broken the internet. While everyone was busy arguing about GPT 5 and Grok 3.5... ... both OpenAI and Anthropic quietly shipped the most important update of 2025. But nobody noticed. This is not clickbait, I promise. And it's going to make a lot of AI coders very, very rich. Let me explain. The Problem Nobody Talked About When MCP servers launched, everyone lost their minds. "This changes everything!" they said. Influencers wouldn't shut...

Hey Reader, You know that feeling when you find something so good, you don't want to share it? Yeah, that's me with Claude Code right now. Let me explain. What Is This? Claude Code is an autonomous AI coder from Anthropic, using Claude (duh). In my book, it was already the world's best-kept AI coding secret. And that's because, until last week, it only ran in the terminal. Which would probably scare 99% of you away... But that has just changed. Claude Code now with with Cursor, Windsurf, VS...