Microsoft’s VS Code team has open-sourced the GitHub Copilot Chat extension under the MIT license, marking a major step in evolving VS Code into an open-source AI-powered code editor. This move enhances transparency, security, and community collaboration in AI-driven development. Unique :

VS Code Goes Open Source with AI-Powered Code Editing
Microsoft’s VS Code team just dropped a game-changing update for developers. They’re open-sourcing the GitHub Copilot Chat extension under the MIT license. This move marks a big step toward making VS Code an open-source AI code editor.
What’s New?
Starting May 2025, the source code for GitHub Copilot Chat is fully open. Soon, AI features from this extension will be integrated directly into VS Code’s core. This means more seamless AI-driven coding experiences right out of the box.
“We believe the future of code editors must be open and embrace AI actively.” – VS Code Team
VS Code has been one of GitHub’s most successful open-source projects for over a decade. Now, with AI becoming central to coding, Microsoft wants to keep that open, community-driven spirit alive.
Why Open Source Now?
Several recent shifts pushed this decision. Large language models (LLMs) have improved so much that secret “prompt recipes” are no longer necessary. Also, AI UI/UX patterns across editors have become quite similar. Open sourcing these common elements lets the community improve and expand them faster.
The AI extension ecosystem is growing rapidly. Developers want easier ways to build, debug, and test AI tools. Previously, Copilot Chat’s closed source code was a big hurdle. Now, transparency and collaboration will thrive.
“Open sourcing Copilot Chat lets everyone see exactly what data is collected, boosting trust and security.” – VS Code Team
Security and Transparency Matter
With AI tools becoming prime targets for attacks, open source helps identify and fix vulnerabilities quickly. Community contributions will strengthen VS Code’s security. Also, open sourcing clarifies what data AI features collect, addressing privacy concerns.
What’s Next?
In the coming weeks, expect the Copilot Chat source code release. AI features will gradually merge into VS Code’s core, focusing on performance, extensibility, and a sleek UI. Microsoft also plans to open source prompt testing infrastructure, making AI feature contributions easier and more reliable.
Developers can track progress on the official roadmap and FAQ pages. Feedback is welcome via GitHub issues, ensuring the community shapes VS Code’s AI future.
Why This Matters for Developers
This shift means a more open, customizable AI coding experience. You’ll get better tools, faster updates, and a chance to contribute directly to AI-powered coding features. It’s a win for anyone who codes with VS Code daily.
In short, Microsoft is making VS Code the go-to open-source AI editor. The future of coding just got a lot more collaborative and exciting.
Happy coding!
From the New blog articles in Microsoft Community Hub