OpenAI Codex CLI and multiple AI coding agents have free tiers. The key is understanding each tool's quota mechanism, how to combine them to extend free usage, and when paid tiers are actually worth it.
AI agent billing spikes come from three places: using a stronger model than the task requires, no depth limit on tool call loops, and context window waste from passing full history every round. The correct cost control strategy is matching model capability to task complexity, not using the strongest model for everything.
Cursor is an AI-powered code editor by Anysphere, built by four MIT graduates, that hit $500M ARR within two years of launch. This article distills the real engineering lessons they've shared publicly: why they forked VSCode instead of building an extension, how Tab prediction's latency engineering works, and the hard production lessons from shipping Agent Mode.
AI agents degrading over long sessions isn't a model problem — it's a context problem. As the context window fills with failed attempts, outdated code, and contradictory instructions, signal-to-noise ratio drops. The fix is treating context like RAM, not a filing cabinet.