Cursor uses a hybrid pricing model with freemium access and a 2-week Pro trial to showcase its AI coding assistant, driving upgrades through flat-fee and per-user plans for individuals and teams.
- Category
AI Code Editor - Business Model
Product-Led Growth (PLG) - Target Market
Individual developers, engineering teams, and startups
Pricing Model: Hybrid — flat-fee for individuals, per-user pricing for teams
Primary Value Metrics: Number of users and AI-powered code interactions
Freemium: Yes, with limited access to AI features
Discount Strategy: Offers annual subscription discounts and a 2-week Pro trial for free users
Core Pricing Structure
Core AI features available in Pro plans; free users receive a 2-week Pro trial to experience full value
Monetization Approach: AI is embedded in both individual and team plans, monetized through usage-based differentiation across tiers
Future Potential: Likely to expand AI capabilities for enterprise workflows, integrations, or debugging assistants as premium upgrades
Cursor leverages its Pro trial and freemium model to showcase the full AI value early, encouraging conversion through high-impact coding enhancements.