Why I QUIT Claude Code for Cursor (NEW Pricing + Honest Review)

Brief Summary

The video discusses the author's decision to switch back to Cursor as his primary AI coding tool, driven by recent developments including Cursor's hiring of key personnel from Anthropic (the creators of Claude), and the introduction of Cursor's new "Ultra" plan. The author compares Cursor's new offerings with Claude Code, assessing the value and capabilities of each, and shares his experience of testing Cursor Ultra by building a functional application.

  • Cursor's strategic hiring of Claude's key developers signals a potential shift in the AI coding landscape.
  • Cursor's Ultra plan, priced at $200/month, offers high usage limits and access to multiple AI models, but lacks transparency in its rate limiting.
  • The author successfully built a social media transcription app using Cursor Ultra, indicating its practical utility and performance.

Intro: Why I'm Switching Back to Cursor

The author announces his return to using Cursor, highlighting a significant development where Cursor's parent company, Anysphere, hired key individuals from Anthropic, the creators of Claude. He mentions that Claude Code's era might be ending. The video aims to explore the reasons behind this switch and evaluate Cursor's new $200/month "Ultra" plan through practical application.

The Big Move: Cursor Hires Claude Code Leaders

Cursor's parent company, Anysphere, has strategically hired Kathwin Woo, the product manager who shaped Claude Codes road map, and Boris Churnney, the lead developer and self-proclaimed creator of Claude Code. This move is described as strategic warfare, giving Cursor access to Claude Code's weaknesses, limitations, and future plans. While Anthropic is well-funded and will continue developing Claude Code, this is a significant blow. The author also states that Claude Code is overhyped, and Cursor has caught up with new features like the web agent and buckbot.

Cursor's New Ultra Plan

The launch of Claude Code was driven by Anthropic's introduction of Max plans, offering increased limits for fixed prices. Cursor now offers similar plans, including the Pro Plus plan and the Ultra plan with 20x limits for $200 a month. The author will test the Ultra plan in the video, noting claims that it virtually eliminates rate limits, unlike Claude Code's Max plan.

Sponsor: Augment Code

Augment Code is introduced as a smart plug-in that enhances code editors like Cursor, VS Code, and Jet Brains. Its key features include powerful background agents, automatic AI model selection based on the task, and a robust internet search function. As an official Anthropic partner, Augment Code utilizes Claude's models to deliver impressive coding results, offering a free 14-day trial.

Cursor Ultra - Is It Worth It?

The $200/month Ultra plan is examined in comparison to Claude Code's Max plan, acknowledging that while the price may seem high, it can be a good deal for access to top-tier coding models. A significant drawback of Cursor's new plans is the shift from request-based to usage-based pricing, resulting in unclear rate limits for local and burst usage. Claude Code offers more transparency with its token limits and 5-hour session resets. Cursor claims the Ultra plan provides 20 times the limits of the Pro plan and includes Max mode, addressing previous context and thinking time limitations. The author values the availability of all models, including OpenAI's and Gemini 2.5 Pro, within Cursor.

Putting the Ultra Plan to the Test: Building an App

The author tests the $200/month plan by building Social X, a tool that converts content from Instagram, TikTok, and YouTube into transcripts. He aims to update the app to remove the login requirement and implement a global daily limit. Coding for several hours, he encounters occasional connection issues but no rate limiting. He notes mixed reactions to the Ultra plan in Cursor's Discord and Reddit communities, with some users praising it and others calling it a scam due to a lack of transparency.

Cursor vs. Claude Code: Which Plan to Pick?

The author summarizes his experience, expressing positive surprise at Cursor Ultra's performance. He was able to use Claude for Opus in Cursor's max mode for three hours without limitations and successfully built the Social X app. The app supports YouTube, Instagram, and TikTok, allowing users to transcribe videos and download the transcripts. The author concludes that the 20x limits are not just marketing and that he was able to build more than expected. For those spending $20 a month, the Cursor Pro plan is recommended. For $60 a month, the Pro Plus plan is a good value. At $100 a month, Claude Code offers a better deal with virtually unlimited coding every 5 hours. For those with $200 a month to spend, the choice is tougher, but the author prefers Cursor Ultra for its availability of all models, background agents, and other features.

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Transcript

Full transcript of “Why I QUIT Claude Code for Cursor (NEW Pricing + Honest Review)”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.

0:00 So, the Cursor team just made a move that has Anthropic, the makers of Claude, probably in tears because Claude codes era might just be over. And in this video, I'll show you why I am switching back to Cursor and I put their new $200 a month ultra plan through its paces for the very first time. Hey, what's up guys? My name is Rob and I've been a coder for over 20 years now. But now I teach people how to build their ideas with AI in ways that even non-technical people can understand. I do this here on YouTube and inside of my AI coding blueprint, which you can learn more about in the description down below. And in this video, we will look at the insane move that Kursa has just made and talk about if their new $200 a month plan is actually worth it. So

0:46 let's start with the move that shocked everyone. Yesterday, Kursa's parent company, Anisphere, quietly hired two of the most important people from Enthropic. Specifically, we are talking about Kathwin Woo, the product manager who shaped the entire Claude Codes road map, and probably equally important, Boris Churnney, the lead developer and self-proclaimed creator of Claude Code. That is literally like a restaurant losing their head, chef, and their manager at the same time. Not good. And this is not just a talent acquisition. This is strategic warfare. These two people know every weakness, every limitation, every future plan of Claude code. And look, I've been in this industry for long enough to know that when you see moves like this, something

1:32 big is coming. You don't spend this type of money to poach big talent unless you're planning to dominate. Obviously, Anthropic is an incredibly well-funded company. Rumors have it that they are even talking to Apple to replace Siri. I have no doubt that they will continue to develop and push Claude code forward, but nevertheless, this is a huge blow. And let's address the elephant in the room. Claude Code is incredibly overhyped. There, I said it. And don't get me wrong, it's an amazing tool, but it's not the miracle that it was just a few weeks ago. And I know that even I made videos saying that cloth code is the best tool in the universe because it was in that moment in time. But when you compare Cloud Code today to tools like

2:18 Cursel, which now also has an ultra plan, but also has brand new features like the web agent that let you code from your phone. It has a buckbot that allows you to integrate it straight into GitHub to prevent you from deploying bugs that you didn't even know that were there. When you take all of this together, it becomes obvious that Cloud Code had a lot of good ideas at the right time, which is why so many people picked it up. But now Kursa has put a lot of work into catching up and they've done so fast. But let's go a step back and think about what actually happened here. So Claude Code launched and everyone jumped on it immediately because Enthropic introduced their max plans with 5x for $100 and 20x the limits for $200. That then provided you

3:04 with basically unlimited coding for a fixed price, which was amazing. But today, Cursa has very similar plans. You can now upgrade to Cursor's Pro Plus plan, which is a little bit hidden, but it gives you three times the Pro Plans limits, or you can go allin with the new 20x limits ultra plan for $200 a month. I haven't tested this ultra plan yet, but I will in this video. And people claim that it is virtually impossible to hit rate limits when you are on this plan like it is when you are on Claude Cold's max plan, but we will actually test it in just a few minutes for the very first time. And before we continue, I want to give a huge thank you to today's sponsor, Augment Code, for supporting the channel and for making videos like this possible. Now, I know that many of you live in powerful tools

3:49 like Cursor or Claude Code. I do too. But Augment Code is a major contender that you need to know about because it takes a very different approach. Instead of being a separate app like Cursor and Cloud Code, it's a smart plug-in that supercharges your favorite editors like Cursor, Windsurf, VS Code, or even Jet Brains if you're into that. My favorite features of Augment Code include the powerful background agents, the fact that you don't need to select an AI model because their AI selects it for you based on the task that you're doing right now, and a really powerful internet search that in my opinion is the best one out there. And because Arcan Code is an official anthropic partner, it uses Claude's powerful models along others to generate truly amazing results. It is genuinely one of

4:36 the best coders out there, and I recommend that you try the magic for yourself with their completely free 14-day trial. I can't recommend them enough, and the link is in the description down below. But now let's look at the $200 a month ultra plan in a bit more detail and then compare it to the Claude Code Max plan for 20X which costs the same. I know to many of you $200 a month sounds like an absolute insanity but trust me if you want to code with the best models you can easily pay that per day and more. So these plans are a really good deal. But now there is one big thing that I really don't like about these new cursor plans because they moved from the requestbased pricing to usagebased pricing. That means that you no longer get these 500 requests per month with unlimited slow

5:23 requests after and instead you now have something called rate limits for local and burst. No one really knows what that means and I highly encourage the cursor team to fix that because it is a really annoying thing that many of you have already complained about. Meanwhile, on the Claude code plan or the max plans, you know exactly what you're getting and when the limits will reset. Every time you talk to Claude, a 5hour session starts. Within that session, you get a specific number of tokens before you run out. And after those 5 hours, your token limits reset. Cursor however has no such thing. There's no transparency whatsoever and it's very annoying. The rate limits could change tomorrow without any announcements and no one could prove it. Having said that, Cursa

6:08 does claim that you get 20 times the limits that you get on the standard $20 a month pro plan. And that means you pay 10 times the price but for 20 times the limits, which is pretty amazing. It now also includes the max mode which is great because that means that you no longer have the problem that cursor used to have where it had like context issues where it would easily forget things or limit itself to shorter thinking times. But the biggest upside and that's one of the main reasons of why I moved back to cursor is that you get all the models not just cla and I know claude is one of the best coding models out there probably the best but there are some cases where you do want to use a different one for example I use openai's

6:56 03 this one right here very often if I want to analyze things or plan out features or find bugs for example I also use Gemini 2.5 Pro when I know that it's going to take some context because Gemini 2.5 Pro has a 1 million context window, right? Again, only in the max mode, but this one is now included. So, Cara, I think, does have the better overall package, but it really needs to be more transparent because otherwise people will be just as confused as I am. But now, let's actually put this $200 a month plan to the test and see how much usage we can actually get out of this investment. I will make a dedicated video just testing the limits all out next week. So, if you're interested in

7:42 that, subscribe. But in this test, we are going to build something for like one or two hours and see how well it does. And hopefully, we won't get rate limited there because wow, that would be a disaster. And here is what we're going to build in this video. I expect it to take about an hour or two, but this is Social X. It's a tool that I built 3 4 months ago that allows you to, as you see right here, to take any Instagram, Tik Tok, or YouTube and convert it into a script, right? Into a transcript of what was said in that video. I haven't updated it in forever, and I don't have a lot of time to do it. So, I might as well do it for a video and make it so that there's no longer a login, but there's like a global daily limit, maybe like 25 or 50 videos or something like that. I have the latest and greatest

8:28 cursor 1.2 here, which includes to-do lists and cute tasks and everything else that they have just released. And I really hope that they won't limit anything I do for at least the next hour or two. So, let's get started. So, for the next few hours, I was just coding away. No problems aside from the occasional connection issue. It would tell me that sometimes I was in a VPN, which I wasn't, or that the model provider couldn't be connected to, which was temporary. But more importantly, while doing all this, I was also reading up on the cursor discord and the Reddit subs. And as of right now, it is really unclear what people think about it. Some people love the ultra plan. Other people call it a literal scam. This all comes from the fact that the plan is not

9:14 transparent, but what I have noticed is that some people run full clawed ous for thinking mode all the time, and this is not okay. It is an incredibly expensive model to run and to expect that you can run this non-stop for just $200 a month is delusional. So, I have to continue testing and see how much we can really get out of this ultra subscription. And I really hope that cursor makes it much more clear what people get for their money. And I really hope they do this soon or else people will flock back to claw code. But for this demo, things were actually going really well. So, it is about 3 hours later on the dot actually and here's what I think about cursor now. Well, honestly, I'm positively surprised. I have been using Claude for Opus in cursors max mode for

10:02 pretty much 3 hours straight without any limitations. I didn't get rate limited whatsoever. And the app that I built actually works. Let me show you. So, let me just grab a Instagram video. And then here is some transcriptions that I've already done, right? It supports right now YouTube, Instagram, and Tik Tok. And you can just paste the URL, transcribe it, and then it will download it. Will use Superbase and OpenAI and another like service on the background to actually get all that data. And this was this was just a very short video, but you can even show timestamps. Let me show you a bigger one just to give you a better idea. So here's like a bigger one that was transcribed. You can copy it, right? You can show the timestamps here too. You

10:49 can transcribe another one. So that's the app that I built. So the bottom line for me is that the 20x limits are not just marketing fluff. I was able to build this tool which between you and I was more than I expected. And if I compare it to cloud code where I wouldn't even be able to use other models or debug board or see which files were edited at what time which may be more important for me as a coder than for you if you're not a coder but for me the winner is clear. But now the question is how do you choose right and I would say it's pretty simple. So if you are able to spend about $20 a month then I would go for the cursor pro plan. It's an incredible value. But if you can spend up to $60 a month, also stick to

11:35 cursor with the Pro Plus plan, which also is really good value. But if you can spend $100 a month, then Claude Code offers an arguably better deal because that $100 gets you virtually unlimited coding resetting every 5 hours. You won't only get OPUS 4, but with Sonnet, that will totally work. However, if you do have $200 a month to spend, then the choice is a little bit tougher. I'm personally going for Cursor Ultra, but if you truly want Oppus 4 for almost unlimited hours every day, then the co the claw code plan for $200 might be a better choice. But for me, it is going to be cursor because building apps like this is just a little bit easier when

12:22 you have all models available, background agents, buck bots, and anything else that cursor will ship in the future. And if you want to get ahead of the curve and start building apps just like this one, even if you're not a technical person, then grab my AI coding blueprint in the description down below. And I'll see you in the next one. Peace.

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