summary (approx. 300 characters): Visual Studio Code is transforming into an open-source AI-powered code editor by releasing the GitHub Copilot Chat extension under the MIT license. This move promotes transparency, community collaboration, and innovation, integrating AI features directly into VS Code’s core for a more open, secure, and extensible development experience. Unique bullet points in HTML:

Visual Studio Code Goes Open Source with AI Integration
Visual Studio Code (VS Code) is taking a bold step forward. Microsoft’s popular code editor is integrating AI deeply while embracing open source principles. This move reshapes how developers interact with AI-powered tools in their favorite editor.
What’s New?
The VS Code team announced that the GitHub Copilot Chat extension will become fully open source under the MIT license. This extension brings AI chat capabilities directly into the editor, making coding smarter and faster.
Moreover, VS Code plans to refactor and embed these AI features into the editor’s core. This means AI assistance won’t just be an add-on; it will be a fundamental part of the development experience.
“The future of code editors must be open and powered by AI,” the VS Code team emphasized.
Why Open Source AI Now?
Several factors motivated this shift. Large language models have improved drastically, reducing the need for secretive prompt engineering. Common AI interaction patterns have emerged, and VS Code wants the community to refine these openly.
Also, a growing ecosystem of open-source AI tools and extensions for VS Code demands better collaboration and transparency. Opening the Copilot Chat code allows extension authors to build, debug, and test more effectively.
Security and data privacy are top priorities too. Opening the code lets users see exactly what data is collected, increasing trust. Plus, community contributions help spot and fix security issues faster.
“Opening the Copilot Chat extension increases transparency and fosters a safer development environment,” the blog highlights.
Major Updates and Next Steps
In the coming weeks, the team will release the Copilot Chat extension code and integrate its AI features into VS Code’s core. Performance, extensibility, and user experience remain key priorities.
Testing AI features is tricky due to the stochastic nature of language models. To address this, VS Code will open source its prompt testing infrastructure. This enables contributors to submit reliable improvements confidently.
Developers can follow progress through the official iteration plan and updated FAQs. The VS Code team invites feedback and community participation to shape this open AI-powered future.
Why This Matters for Developers
By making AI features open source, VS Code strengthens its position as a community-driven editor. Developers gain more control, transparency, and the ability to innovate on AI tools directly.
This move could spark a new wave of AI-powered extensions and integrations, all built on a shared, open foundation. It’s a win for open source and for anyone who codes.
Ready to join the journey? Keep an eye on VS Code’s GitHub and official channels for updates. Happy coding!
From the New blog articles in Microsoft Community Hub