At the Build 2025 conference, Microsoft revealed plans to open source the GitHub Copilot Chat extension and integrate AI capabilities into the VS Code codebase. This shift may hinder competing AI code editors by enhancing feature richness and integration. Microsoft highlights the importance of transparency in AI developments and responds to extension developers' requests for better integration. By using the MIT license, Microsoft aims to limit the competitive advantage of forks of Visual Studio Code that previously thrived due to licensing challenges.
Microsoft's announcement to open source the code behind the GitHub Copilot Chat extension aims to enhance integration and potentially diminish competition with for-pay AI code editors.
By making Copilot Chat open-source under the MIT license, Microsoft addresses extension authors' integration needs and reinforces its position in the AI code editing market.
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