The AI Toolkit for VS Code July update (v0.16.0) introduces GitHub pay-as-you-go model support, stable Agent Builder features like function calling, and seamless scaling from local development to cloud with Azure AI Foundry. Explore 100+ models and deploy effortlessly within VS Code! Unique :
AI Toolkit for VS Code July Update: What’s New?
Microsoft just dropped a major update for the AI Toolkit in Visual Studio Code. Version 0.16.0 is now live, packing features teased last month plus fresh improvements. If you’re building AI agents or experimenting with models, this update is a game-changer.
GitHub Pay-as-You-Go Models: No More Workflow Interruptions
One of the biggest highlights is the new support for GitHub’s pay-as-you-go models. Previously, hitting free tier limits meant annoying interruptions. Now, the AI Toolkit smoothly prompts you to enable billing, letting you keep building without skipping a beat.
“AI Toolkit will provide a clear prompt with a link to GitHub’s paid usage documentation.”
Once billing is enabled in your GitHub settings, you can continue using the same models in the Playground or Agent Builder. No workflow changes needed, just seamless scaling as your project grows.
Agent Builder Gets Smarter and More User-Friendly
Last month’s early access features like function calling and agent version management are now stable. These help you build more dynamic and reliable AI agents. Plus, usability tweaks like a resizable divider and a cleaner evaluation results table make the experience smoother.
For those deep into agent development, the official Agent Builder documentation is worth a look to explore these enhancements.
Local to Cloud: Effortless Scaling with Azure AI Foundry
Another game-changer is the seamless transition from local experiments to cloud deployment. The new Model Catalog view lets you browse 100+ Azure AI Foundry models directly inside VS Code. Deploying a model to the cloud now takes just one click.
“Start with free, hosted models on GitHub to experiment, then scale effortlessly to Azure AI Foundry.”
This means you can prototype quickly using free models, then scale up without breaking your flow when hitting rate limits or token caps.
Get Started and Join the Community
If you haven’t tried AI Toolkit for VS Code yet, now’s the perfect time. Install it from the VS Code Marketplace and start building intelligent agents today.
Microsoft encourages feedback and contributions via their GitHub repo. Your input helps shape the future of AI agent development.
Final Thoughts
This July update makes AI Toolkit for VS Code more powerful and flexible than ever. With pay-as-you-go support, enhanced agent building, and cloud scaling, it’s a must-have for AI developers. Happy coding, and stay tuned for August’s update!
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