Microsoft Releases GitHub Coding Assistant for VS Code Under MIT License

Wed 2nd Jul, 2025

Microsoft has made the source code for the GitHub Copilot Chat extension available for Visual Studio Code, transitioning it to an MIT license. This move marks a significant step in Microsoft's initiative to develop VS Code into a fully open-source AI editor.

With the release of the source code, developers now have the opportunity to explore how the chat extension interprets prompts and the context it provides to the large language model (LLM). The disclosed code includes the complete implementation, system prompts, and telemetry data. A blog post accompanying the announcement encourages users to utilize the agent mode for assistance in navigating and understanding their codebases.

However, Microsoft will not be releasing the source code for the original extension that includes code completion functionalities. Instead, the company plans to integrate these capabilities into the newly released open-source extension over the coming months.

The long-term vision for the GitHub Copilot Chat extension is to fully incorporate it into the main VS Code repository. By adopting this open-source strategy, Microsoft aims to enhance its AI functionality through community contributions while simplifying the process for developers to create AI-enabled extensions. Moreover, offering source code clarity will increase transparency regarding the data that Microsoft collects and transmits.

The company has shifted its perspective on previously considered necessary confidentiality, declaring it no longer essential. They acknowledge that large language models have significantly advanced, reducing the need for proprietary prompt strategies.

This initiative reflects Microsoft's commitment to fostering an open-source ecosystem around its development tools, encouraging collaboration and innovation within the programming community.


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