In a strategic move to cater to power users, Anysphere has launched a new subscription plan for its AI coding tool, Cursor, with a monthly fee of $200. This premium offering, dubbed Ultra, provides users with a substantial increase in AI model usage, boasting 20 times more than the company's existing $20-a-month Pro plan. These AI models are sourced from renowned providers such as OpenAI, Anthropic, Google DeepMind, and xAI. Additionally, Ultra subscribers are granted priority access to Cursor's latest feature rollouts.
The CEO of Anysphere, Michael Truell, highlighted in a recent blog post that the Ultra plan is a result of multi-year partnerships with AI model providers. This move follows a trend where these providers have introduced higher-tier subscription plans, ranging from $100 to $250 per month, to tap into their most active users and offer them enhanced capabilities.
The introduction of the Cursor Ultra plan is expected to bolster Anysphere's already thriving financial performance. The company reported that Cursor has achieved $500 million in annualized recurring revenue (ARR), with major corporations like Nvidia, Uber, and Adobe among its users. Anysphere's rapid ascension to the $100 million ARR mark is a testament to its growth, and recent figures from TechCrunch indicate that Cursor's ARR has surged by $200 million since April.
The competitive landscape for AI coding tools, or "vibe-coding" tools, is intensifying. AI model providers that Cursor relies on are developing their own AI coding products, with OpenAI reportedly acquiring Cursor's competitor, Windsurf, to expand its AI coding product lineup. Anthropic, on the other hand, is advancing its in-house AI coding tool, Claude Code, which leverages its well-known AI models.
The sustainability of Anysphere's growth in the face of competition from AI model providers remains to be seen. The AI coding industry has witnessed increasingly competitive tactics as businesses expand. For instance, Anthropic has restricted Windsurf's direct access to Claude AI models, a move aimed at undermining its primary competitor, OpenAI.
Anysphere is not sitting idle in the face of this competition. The company has been investing in the development of its own AI models to complement those from OpenAI and Anthropic. In May, Anysphere introduced a new "Tab" AI model capable of suggesting code changes across various files.
In an interview with TechCrunch, Anthropic co-founder Jared Kaplan expressed optimism about a long-term partnership with Cursor, suggesting that Anysphere's multi-year partnerships with AI model providers are stable. However, the battle for users is becoming fiercer, and Anysphere's Cursor will need to continue innovating to maintain its edge in the AI coding tool market.