Cursor bets on cheaper coding with Composer 2.5 and Kimi K2.5

Cursor released Composer 2.5, a cheaper AI coding model built on Moonshot Kimi K2.5.

The company says it outperforms Composer 2 on benchmarks, long-horizon coding, instruction following, and training efficiency.

It was trained with more synthetic tasks and new RL methods, and is priced at $0.50 per million input tokens.

Cursor is positioning it as a lower-cost alternative to pricier coding models from Anthropic and OpenAI.

But questions remain about reward hacking and whether benchmark gains will translate into real developer productivity.