Amp Code Discontinues VS Code Extension, Citing 'Dead Sidebar' Philosophy - Open-Source Alternative Kilo Code Emerges

Amp, an AI-powered coding assistant, has announced the discontinuation of its Visual Studio Code extension as the company pivots toward command-line interface and standalone tools. The decision, which has drawn criticism from developers who prefer integrated editor experiences, creates an opening for open-source alternatives like Kilo Code to capture displaced users.

Amp Abandons Editor Integration

Amp’s creators announced they will shut down their VS Code extension to focus exclusively on CLI and standalone application development. The company behind the tool, Sourcegraph, has embraced a philosophy that the “sidebar is dead” - referring to the panel-based interfaces common in modern code editors where AI assistants typically operate.

This strategic shift represents a significant bet on workflow fragmentation, requiring developers to leave their editing environment entirely when seeking AI assistance. The announcement has generated substantial pushback from the developer community, where integrated tooling remains highly valued for maintaining flow state and reducing context switching.

Developer Workflow Friction Debated

The core disagreement centers on how developers interact with AI coding assistants. Amp’s position holds that separating the AI interface from the code editor creates superior experiences. However, many developers argue that keeping an AI agent inside the editor reduces friction compared to switching between external applications.

Integrated extensions allow AI assistants to maintain direct awareness of file structure, cursor position, and project context without explicit synchronization. External tools require developers to manually manage context windows, copy-paste code segments, or rely on IDE-agnostic integrations that may lack precision.

Kilo Code Positions as Open-Source Successor

Kilo Code has emerged as the leading alternative for developers seeking to maintain integrated AI assistance within VS Code. The open-source project offers both editor extension and CLI tooling, providing flexibility without forcing an either-or decision.

Technical Specifications

Kilo Code distinguishes itself through several capabilities:

• Model diversity: Support for 500+ models including Claude 4, GPT-5 Mini, Gemini 3, Grok, and local deployments via Ollama
• Pricing transparency: Raw API pricing with no markup, no advertisements, and no data training on user code
• Architecture modes: Specialized Architect/Orchestrator modes for complex multi-file operations
• Memory systems: Memory Bank functionality for maintaining context across extended sessions
• Extensibility: MCP server support for integration with external tools and data sources

Dual-Mode Availability

Unlike Amp’s forced migration, Kilo Code maintains both VS Code extension and CLI versions, allowing developers to choose their preferred interaction model or switch between them based on task requirements. This approach acknowledges that different workflows suit different scenarios - quick inline edits benefit from editor integration, while extended refactoring sessions might work well in dedicated terminal interfaces.

Market Implications

The Amp discontinuation highlights ongoing turbulence in the AI coding assistant market, where business model pressures frequently conflict with user preferences for stable, integrated tooling. Open-source alternatives like Kilo Code may benefit from this instability as developers seek solutions with transparent governance and multi-modal availability.

The episode also illustrates divergent philosophies about the future of software development interfaces - whether AI assistants will become ambient background processes, dedicated companion applications, or maintain their current position as editor-integrated tools. The coming months will reveal whether Amp’s sidebar skepticism proves prescient or represents a miscalculation of developer priorities.