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Yes: Microsoft released the client-side GitHub Copilot Chat extension under the MIT license, making its source available in the microsoft/vscode-copilot-chat repository. The opening also covers inline suggestions, which Microsoft said it had open-sourced by November 2025. It does not make Copilot’s hosted services or the separately licensed AI models open source, and users still need a GitHub account and access to Copilot.

What Microsoft open-sourced

Microsoft’s announcement on May 19, 2025, set out a two-part plan: release the GitHub Copilot Chat extension under the MIT license, then move relevant components into VS Code itself. On June 30, the VS Code team announced the first milestone: the Copilot Chat extension’s source was public under that license in the microsoft/vscode-copilot-chat repository.

The release is the extension’s client code—not a release of every part of the Copilot product. The public repository gives people a place to inspect that code, report issues, and propose changes. Microsoft said the move was intended to encourage community contributions, make extension development and testing easier, improve transparency around data collection, and support public security review.

Inline suggestions joined later

At the June milestone, Microsoft distinguished Copilot Chat from the original Copilot inline-completions extension, which it said was still closed source at that point. In an update on November 6, 2025, the team said inline suggestions were now open source and described a move toward one Copilot Chat extension covering chat, agent mode, next-edit suggestions, and inline suggestions.

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What remains closed or account-backed

Opening the extension’s source does not open-source GitHub Copilot’s backend services. Microsoft’s VS Code FAQ says those services remain closed source. The hosted inference service is therefore not provided as a self-hostable version merely because the client code is public.

Access also remains tied to a GitHub account and Copilot eligibility. The FAQ says individual developers can use the Copilot Free plan subject to restrictions; the extension’s MIT license does not make every Copilot feature or service free. Copilot’s models are separately licensed and can come from third parties, including OpenAI, Anthropic, and Google.

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What users can inspect—and what that does not prove

Because the client code is public, developers can examine implementation details such as prompts, telemetry capture, and agent-mode behavior in the repository. That improves visibility into the client, but it should not be confused with proof that telemetry is disabled, a guarantee about how data is handled by the hosted backend, or access to the backend’s source code.

Microsoft framed openness as a way to make it easier to identify bugs, propose changes, test prompt behavior, and build interoperable extensions. Those are opportunities and stated goals, not published measurements of productivity or performance gains.

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What the change means for VS Code extensions

Microsoft says extension authors can continue using backwards-compatible stable APIs. VS Code also documents AI-oriented Language Model, Tools, and Shell Execution APIs for extensions. The public Copilot client and those APIs may help developers understand or build integrations, but they are distinct: access to an API does not grant access to Copilot’s private backend.

Users are not limited to Copilot. The VS Code FAQ says other AI coding extensions, including Cline and Roo Code, can continue to be used in VS Code.

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What happened to the separate Copilot extension?

In its November 6, 2025 update, Microsoft said the unified Copilot Chat extension was being progressively rolled out and that a temporary setting could restore the previous two-extension behavior for users who encountered problems. The team also said the original GitHub Copilot extension would be deprecated by early 2026 and removed from the VS Code Marketplace.

That announcement describes Microsoft’s plan at the time; it does not, by itself, confirm whether the removal was completed. If you are deciding how to install or migrate today, check the current VS Code Marketplace listing and Microsoft’s current VS Code guidance rather than relying on the announced target date.

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Why Microsoft is moving AI features into VS Code

Microsoft’s stated destination is an AI editor built by moving relevant components from the extension into VS Code core. The company said it intends to preserve performance, extensibility, and user-interface quality during that refactoring. The open-source client creates a contribution path and greater inspectability; the hosted Copilot service, model licenses, and account-based access remain separate parts of the arrangement.

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