Cursor just dropped version 0.5, and it’s not just a feature bump — it’s a signal. While many have viewed Cursor as a "Copilot alternative," this release makes one thing clear: it’s now setting the pace. Cursor, a fork of VSCode, has been steadily building its own path in the AI-assisted development world. Unlike Copilot, which mostly stays in autocomplete territory, Cursor blends powerful GPT-based tooling with in-editor chat, agents, and vibe coding workflows — where developers guide the AI to build software, not just fill in code. With this release, Cursor proves it's no longer catching up. It’s stepping ahead. Smarter Pricing, Cleaner Model One of the biggest changes in 0.5 is the simplified pricing model. It’s now request-based: each action with the AI is a "request," and pricing is easy to predict. simplified pricing model Here’s how it looks: Free: 2,000 completions and 50 slow requests/month
Pro ($20/mo): Unlimited completions, 500 fast requests
Enterprise ($40/user/mo): Centralized billing, enforced privacy, and team-level features Free: 2,000 completions and 50 slow requests/month Free Pro ($20/mo): Unlimited completions, 500 fast requests Pro ($20/mo) Enterprise ($40/user/mo): Centralized billing, enforced privacy, and team-level features Enterprise ($40/user/mo) Premium models include GPT-4, GPT-4o, Claude 3.5, and the latest Claude 3.7 Sonnet. Each request costs $0.04, and if you enable Max Mode (for more complex prompts), you switch to token-based billing with a 20% markup over API cost. GPT-4 GPT-4o Claude 3.5 Claude 3.7 Sonnet Max Mode It’s cleaner, more transparent, and lets developers scale up with less friction. Multi-File Edits via Tab Model Cursor’s Tab Model — a core part of its workflow — just got a major upgrade. Before, you could auto-apply AI-suggested changes with TAB, but only in a single file. TAB Now, Cursor can intelligently suggest and apply edits across multiple files at once. This is a massive improvement for real-world workflows, where features often touch multiple files, components, or layers. multiple files at once No more 40,000-line files or repetitive copy-paste. The AI now sees the full picture. Background Agent: Build While You Build This feature is a vibe coder’s dream. With the new background agent, you can ask Cursor to implement a feature, generate boilerplate, or refactor something — all while you continue working on something else. background agent It’s similar to the old Codex-style "fire and forget" workflows. You describe what you want, and Cursor quietly builds it for you in the background. Perfect for offloading routine tasks while keeping your focus where it matters. Handling Big Files Without Pain Cursor 0.5 includes a much-improved search-and-replace system for long files. search-and-replace We all know we should split things up and follow good architecture, but sometimes you're stuck with a giant file that grew out of control. Cursor now makes it easier to surgically update specific logic without editing manually or running dangerous replaces. It's not glamorous, but it’s one of those features that saves you when you need it most. Real Support for Monorepos and Microservices This update makes Cursor genuinely usable in monorepos, multi-package workspaces, and microservice projects. monorepos multi-package workspaces microservice projects Previous versions had trouble operating across multiple roots or linked folders. Now, Cursor’s agents and AI chat can understand your entire project structure, even when it spans multiple apps and libraries. If you’re working in a real production-grade setup, this is the moment Cursor becomes viable at scale. Bonus Upgrades Cursor 0.5 includes other nice additions that bring more polish: Duplicate chats to try different prompt paths
Export conversations for review or documentation
Refreshed inline edit experience that makes local changes smoother Duplicate chats to try different prompt paths Duplicate chats Export conversations for review or documentation Export conversations Refreshed inline edit experience that makes local changes smoother Refreshed inline edit Community Is Waking Up Cursor’s developer base has started to take notice. Some praise the smarter Tab Model and background agent, others still want more polish. “Didn’t even need to hint what else to change — it just got it.”— forum.cursor.com “Didn’t even need to hint what else to change — it just got it.”— forum.cursor.com “Still edits the wrong files sometimes… feels buggy.”— same thread “Still edits the wrong files sometimes… feels buggy.”— same thread It’s not perfect, but Cursor 0.5 shows massive momentum — and it’s enough to pull power users and early adopters deeper into the fold. Final Thoughts Cursor 0.5 is more than a version bump — it’s Cursor growing into its own identity. It’s not just a Copilot alternative anymore. It’s a real contender — especially for developers who want to experiment, vibe code, and build fast. The AI tooling space is heating up fast. And right now? Cursor's playing to win. To learn more about vibe coding subscribe to my vibe coding newsletter, where I share actionable tips every week for free so you can manage AI to write perfect code. To learn more about vibe coding subscribe to my vibe coding newsletter, where I share actionable tips every week for free so you can manage AI to write perfect code. vibe coding vibe coding While we’re at it, check out also my latest 459-page e-book called Vibe Coding Bible that help people like you become frontiers of the new way of building apps! While we’re at it, check out also my latest 459-page e-book called Vibe Coding Bible that help people like you become frontiers of the new way of building apps! Vibe Coding Bible Vibe Coding Bible And if you’re a founder, check out also my latest e-book: AI for Founders, where I share 100 AI tools for people like you to help in every step of the round to turn your idea into reality. And if you’re a founder, check out also my latest e-book: AI for Founders, where I share 100 AI tools for people like you to help in every step of the round to turn your idea into reality. AI for Founders AI for Founders

Community Is

Angular Quietly Publishes AI Usage Guidelines

Cursor 0.5 Is Here — and It's Ready to Lead the AI Coding Race

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

Angular Destroys React When It Comes to Scaling Enterprise Apps: Here's Why

AI Coding Tools Are Still in the R&D Stage

Vibe Coding Will 10X Every Developer, Yet Never, Ever, Replace Them

Your Next Tech Job? Vibe Coding

Everyone’s an AI User Now—But No One Read the Manual

Angular Destroys React When It Comes to Scaling Enterprise Apps: Here's Why

AI Coding Tools Are Still in the R&D Stage

Vibe Coding Will 10X Every Developer, Yet Never, Ever, Replace Them

Your Next Tech Job? Vibe Coding

Everyone’s an AI User Now—But No One Read the Manual

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps