Microsoft Open-Sources GitHub Copilot Inline Code Suggestions in VS Code

Microsoft open-sourced GitHub Copilot's inline code suggestion feature in Visual Studio Code, completing a major step toward creating a fully transparent AI editor. The "ghost text" functionality, which provides real-time code completions as developers type, was previously closed-source but is now available for community review and contribution. Microsoft is consolidating all Copilot features into a single Chat extension, retiring the original separate Copilot extension by early 2026.