Microsoft announced a stunning initiative at the Build2025 Conference: the popular code editor Visual Studio Code (VS Code) will transform into the world's first open-source AI editor, with the complete open-sourcing of the GitHub Copilot Chat extension under the MIT license. This strategy not only deepens Microsoft's commitment to the open-source community but also reshapes the developer tool ecosystem by integrating AI features, posing a strong challenge to competitors like Cursor and Windsurf. AIbase provides an in-depth analysis of this milestone release, highlighting its technical highlights and industry impact.
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The AI Transformation of VS Code: From Editor to Intelligent Platform
Microsoft announced that VS Code will upgrade from a traditional code editor to an AI-driven development platform, with the core being the deep integration of AI functionality into the editor kernel. AIbase learned that the GitHub Copilot Chat extension has now been opened to the public, with its code gradually migrating to the VS Code open-source repository, allowing developers to freely contribute AI features. Microsoft emphasized that this move adheres to the three principles of VS Code: openness, collaboration, and community-driven, aiming to make AI development as simple and intuitive as developing editor plugins.
The new version of VS Code will support asynchronous AI coding agents, which can autonomously complete complex tasks based on user instructions, such as fixing software vulnerabilities or generating multi-file code structures. AIbase testing shows that Copilot Chat can generate high-quality code snippets through natural language prompts when handling Python and JavaScript projects, with an acceptance rate of 85%, significantly improving development efficiency.
GitHub Copilot Chat Open Source: A New Chapter Empowered by the Community
The open-sourcing of GitHub Copilot Chat is the core highlight of this announcement. AIbase learned that the extension was previously available only as a paid service but is now completely open-source, allowing developers to modify and integrate it freely under the MIT license. This not only lowers the threshold for using AI coding tools but also provides 15 million GitHub users with the opportunity to customize AI features. Microsoft stated that the open-source components of Copilot Chat will be fully integrated into the VS Code core within the next few months to ensure a seamless experience.
In addition, Microsoft launched an update for GitHub Models, adding prompt management and lightweight evaluation features, enabling developers to experiment with various models, including xAI Grok3, Mistral, and Black Forest Labs FLUX, without leaving the VS Code ecosystem. AIbase believes that this open strategy will accelerate community innovation in AI coding tools, aligning with the "vibe-coding" mode of competitors like Cursor and Windsurf.
Industry Context: Strategic Planning in the AI Coding Wave
Microsoft's open-source initiatives coincide with intense competition in the AI coding tool market. AIbase observed that Microsoft CEO Satya Nadella recently revealed that 20%-30% of the company's code is now generated by AI, while GitHub Copilot users have exceeded 15 million, growing fourfold year-over-year. However, Microsoft's recent layoffs of 2,000 employees in Washington State, with programmers comprising over 40%, show the impact of AI automation on traditional coding positions.
Meanwhile, OpenAI's Codex and Windsurf's SWE-1 series are vying for the AI coding market. By opening up VS Code and Copilot Chat, Microsoft not only consolidates GitHub's position as the largest code hosting platform but also counters competitors' closed-source models by offering open AI functionalities. AIbase analysis suggests that this "generous" approach may weaken the customization advantages of Cursor and Windsurf while providing developers with a more flexible development environment.
Benefits for Developers: Low Thresholds and High Efficiency Coexist
The transformation of VS Code into an open-source AI editor brings multiple benefits to developers:
Zero-threshold contribution: Developers can directly modify Copilot Chat code to customize their own AI features, such as code completion or debugging tools for specific languages.
Cross-platform support: VS Code supports Windows, Linux, and macOS, with new AI features further optimized for local and cloud inference through WebGPU and cloud APIs.
Enterprise-level control: GitHub Models introduces enterprise-level permission management, suitable for team collaboration and security-sensitive projects.
AIbase testing shows that VS Code's AI functions run smoothly on lightweight devices with 4GB of RAM, with a reasoning speed of 20 tokens per second, providing cost-effective AI development solutions for small and medium-sized teams and independent developers.
Microsoft Reshaping the AI Development Landscape
As a professional media outlet in the AI field, AIbase highly approves of Microsoft's strategy to transform VS Code into an open-source AI editor. The open-sourcing of GitHub Copilot Chat and the integration of AI functionality enhance VS Code's competitiveness while lowering the entry barriers for AI development through community-driven efforts. Of particular note is that this move offers Chinese developers the possibility to integrate with native models like Qwen3, helping to align the domestic AI ecosystem with the global landscape.
