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.
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
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.
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.
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.
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.
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.
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.
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
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
“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
While we’re at it, check out also my latest 459-page e-book called
And if you’re a founder, check out also my latest e-book: