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6h ago

Viral Reddit Post Alleges Startup Made Developers Pay for AI Tool, Then Tied Reimbursement to Usage Reports

Indian outlets reported the claims without independent confirmation, with no public response from the employer.

Employee claims startup made staff pay for AI tool, calls it ‘peak exploitation’ (Photo: Representative Image from Pexels)
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Overview

  • An anonymous SDE on r/developersIndia said a product startup told developers to buy Cursor IDE for company tasks with a promise of later reimbursement.
  • The post claimed management later required detailed usage reports, including unit tests written and contribution toward an 80% coverage goal, before approving repayment.
  • The reported cost was about $20 per month for two months that workers initially paid out of pocket.
  • The thread drew strong reactions online, with commenters expressing sympathy and urging the employee to expose the company.
  • Coverage by India Today, Mint, and Business Today on November 8–9 noted the lack of a company response and framed the dispute as part of AI-driven cost shifting onto employees.