VS Code Solidifies AI Dominance with New OpenAI Codex Integration, Reducing Reliance on Dedicated AI IDEs

REDMOND, WA / VIENNA, AUSTRIA – Visual Studio Code, Microsoft's popular code editor, is significantly enhancing its artificial intelligence capabilities with the recent integration of OpenAI's advanced "Codex" coding agent. This development has prompted notable figures in the developer community, such as Peter Steinberger, a prominent iOS developer and founder of PSPDFKit, to remark on the shifting landscape of AI-powered development environments. On August 29, 2025, Steinberger stated on social media, "> VS Code Codex is slick. One less reason for opening Cursor."

This sentiment follows OpenAI's August 27, 2025, announcement of a new "Codex" extension for VS Code, which brings OpenAI's powerful agentic features directly into the IDE. These features include intelligent code generation, automated code reviews, and the ability to delegate complex coding tasks to the cloud, all accessible via ChatGPT Plus, Pro, Team, Edu, and Enterprise plans. This new offering complements VS Code's existing robust AI capabilities, primarily driven by GitHub Copilot, which provides inline code completions, natural language chat, and autonomous coding modes.

For a period, specialized AI-first integrated development environments (IDEs) like Cursor, a fork of VS Code developed by Anysphere Inc., gained traction by offering deep AI integration and support for various large language models (LLMs). Cursor distinguished itself with features such as codebase-wide understanding and natural language-driven code manipulation. However, recent advancements in GitHub Copilot have seen it rapidly incorporate similar cutting-edge features, including access to advanced LLMs like Claude 3.7 Sonnet and GPT-4.5, effectively closing the feature gap.

Peter Steinberger, known for his work in AI-powered developer tools and "vibe coding," has been actively experimenting with various platforms. His recent blog post on August 25, 2025, noted a shift in his primary workflow, indicating a move away from being "all-in on VS Code" to using Ghostty, but still keeping VS Code for certain tasks and Cursor for reviews. His endorsement of "VS Code Codex" highlights the growing power and seamless integration of AI within established IDEs.

The increasing sophistication of AI features within mainstream platforms like VS Code suggests a trend where developers may find less need for standalone AI-focused IDEs. As AI capabilities become more deeply embedded and accessible directly within widely adopted development tools, the competitive edge previously held by specialized solutions is diminishing, paving the way for more unified and powerful coding experiences.