Augment hikes price for AI code editor, users protest
Briefly

Augment hikes price for AI code editor, users protest
"Augment has updated its pricing model for Augment Code, an AI coding assistant, to be based on AI usage rather than message interactions. The company said its existing model "isn't sustainable" but users have calculated that the new one is more than ten times as expensive. The startup was launched in April 2024, co-founded by Igor Ostrovsky (ex-Microsoft software engineer) and Guy Gur-Ari (ex-Google AI research), and backed by venture capital including investment from Eric Schmidt (former Google CEO)."
"Its main product is Augment Code, which provides AI-powered chat, Next Edit code suggestions, inline code completions, and agentic AI programming, which can create an app from scratch. Popular features in Augment Code include a Memories feature that persists context across conversations, and a 200K context window, meaning the AI is better informed about the codebase it is asked to work on. The price increase follows an earlier hike just six months ago."
"Originally, there was a free community plan for individuals, a $30/user-month plan for professionals, and a $60 plan for enterprise, all of which provided unlimited chats and completions. In early May, this was replaced by "new, simpler pricing" based on the number of messages successfully processed. Free users got 50 messages, a $50.00 developer plan 600 messages, $100 professional 1,500 messages, and $250 max plan 4,500 messages."
Augment changed its pricing model for Augment Code from message-based to AI-usage-based billing, citing unsustainable costs under the previous model. The startup launched in April 2024, co-founded by Igor Ostrovsky and Guy Gur-Ari, with venture backing including Eric Schmidt. Augment Code offers AI-powered chat, Next Edit suggestions, inline completions, agentic programming, a Memories feature, and a 200K token context window to better understand codebases. Pricing moved from free and unlimited-chat tiers to message quotas in May, then to usage-based billing, with users calculating the new model can cost over ten times more. The CEO explained that message counts underrepresent backend processing costs.
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