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Cursor or Windsurf?
ALSO: TSMC unveils better AI chips
In Today’s Issue:
Cursor or Windsurf?
TSMC unveils better AI chips
Read time: 2 minutes
Cursor or Windsurf?
Windsurf, one of the prominent code editors, announced that they were cutting costs. The company was rumored to be in a $3 billion acquisition deal with OpenAI. Windsurf’s biggest competitor, Cursor-creator Anysphere, was rumored to be raising at a $10 billion valuation.
Windsurf’s PM took to X to announce it and throw shade at Cursor.
With today's pricing update, @windsurf_ai now has BY FAR the best and most affordable pricing structure of all AI coding tools on the market.
For $15/month, you get 500 premium model prompt credits. Not to mention unlimited Tab completions and access to models like Cascade Base,
— Rob (@robhou_)
8:04 PM • Apr 21, 2025
“$30/month. No fake usage limits. Just coding. Some tools spend more time raising than building — we’re here shipping.”
The update comes as Windsurf overhauled its pricing structure, eliminating its old “flow action credit” system — a confusing usage meter that had frustrated developers — and slashing its team plan pricing to $30 per user per month. The move undercuts Cursor, whose starter plan begins at $20 and scales up quickly with usage.
Cursor, which recently introduced new integrations and raised eyebrows for hiring ex-OpenAI researchers, hasn’t publicly responded. But Windsurf’s jab sparked debate across dev communities on X and Discord, with some praising the transparency and others noting Windsurf’s own reliance on OpenAI APIs.
The timing is notable: OpenAI has recently teased deeper IDE integrations, and Windsurf CEO Varun Mohan appeared in a cameo during OpenAI’s spring model launch — a signal, perhaps, of closer ties.

Code editor
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TSMC unveils better AI chips

Taiwan Semiconductor Manufacturing Company (TSMC) unveiled a major leap forward in chip design on Wednesday with new technology aimed at powering next-generation AI systems. The chip giant introduced “System on Wafer-X,” a breakthrough packaging method that can combine at least 16 large compute chips, memory units, and ultra-fast optical interconnects — all on a single wafer-sized module.
The system is designed to handle thousands of watts of power, aimed at high-performance AI workloads. TSMC also previewed its future A14 manufacturing node, due in 2028, which will offer 15% faster performance or 30% better power efficiency compared to the N2 chips rolling out this year.
The company plans to build two new U.S. factories near its Arizona site to support production. Rival Intel is expected to debut its own advanced manufacturing technologies next week, as both companies battle for AI hardware leadership. As AI workloads demand more integrated compute, packaging — not just transistor speed — is becoming the new frontier.
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