The removal forces VS Code users to adopt new AI tools, reshaping market dynamics and impacting developer productivity.
AMP, the AI coding agent originally from Sourcegraph, announced it will permanently discontinue its VS Code extension, opting to concentrate on a standalone CLI and web experience. The decision was disclosed on the company’s “Raising an Agent” podcast, where founders Quinn Slack and Thorsten Ball called the sidebar “dead.”
The move signals a broader shift away from embedded editor plugins toward independent tools. While AMP recently added features like a code‑review agent and a free ad‑supported tier, it now believes the VS Code sidebar no longer represents the future of AI‑assisted development.
For developers reliant on the extension, the video recommends Kilo Code as a replacement. Kilo Code remains a VS Code extension, supports over 500 models—including Claude 4, GPT‑5, Gemini 3—and offers $20 in free credits without ads or data collection. Its open‑source Apache 2.0 license, transparent pricing, and complementary CLI give users flexibility.
The discontinuation forces VS Code users to evaluate alternatives, potentially accelerating adoption of more versatile AI assistants. Maintaining editor integration preserves workflow efficiency, while the rise of open‑source options like Kilo Code could reshape the competitive landscape for AI coding tools.
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