Former GitLab CEO Launches Kilo in AI Coding Boom

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Dec 10, 2025

Imagine a former GitLab CEO stepping back into the startup world to build the next big thing in AI-assisted coding. With $8 million freshly raised, Kilo is already processing trillions of tokens and gaining fans fast—but can it stand out in a market that's exploding? Here's what makes this one different...

Financial market analysis from 10/12/2025. Market conditions may have changed since publication.

Have you ever wondered what happens when one of the most successful open-source leaders decides to jump back into the startup game? I mean, really jump in—raising money, building a team, and tackling one of the hottest spaces in tech right now. That’s exactly what’s unfolding with Kilo, the new AI coding venture from Sid Sijbrandij, the co-founder and former CEO of GitLab. And honestly, it’s pretty exciting to watch.

Just this week, Kilo announced an $8 million seed round, and it’s already making waves in the AI developer tools world. The company is laser-focused on what’s being called “vibe coding”—that intuitive, almost conversational way of building software where you describe what you want, and the AI does the heavy lifting. In a market that’s suddenly overflowing with players, Kilo is betting that a fresh, open-source approach will win the day.

The Rise of Vibe Coding: Why Everyone’s Talking About It

Let’s back up for a second. The term “vibe coding” might sound casual, but it’s become the shorthand for a fundamental shift in how software gets built. Instead of typing out every line of code yourself, you tell an AI what you need—maybe in plain English—and it generates the code, debugs it, or even refactors entire sections. It’s like having a super-smart coding partner who never gets tired.

Big names in tech have been all over this. Microsoft has said that a huge chunk of their code is now written with AI help. Google and others are pouring resources into it too. And the numbers are staggering—developers are reporting massive time savings, and startups are shipping products faster than ever before. But here’s the thing: the space is getting crowded. Tools from Cursor to Claude to GitHub Copilot are all vying for attention.

So why does Kilo matter? Because it’s coming from someone who already proved he can build something massive in the dev tools world. Sid Sijbrandij didn’t just lead GitLab to a multi-billion-dollar IPO—he helped shape the entire open-source collaboration landscape. When someone like that enters the AI coding arena, people pay attention.

Who Is Behind Kilo—and Why It Feels Different

Sid Sijbrandij stepped down as CEO of GitLab a while back to focus on health issues, but he’s clearly not done with building things. He met Scott Breitenother, the co-founder and CEO of Kilo, through a mutual connection, and the conversation moved fast. Within minutes, Sid was asking Scott to join him on the project. That’s the kind of energy that gets things done quickly.

Scott brings his own experience—he ran a successful data consultancy before this. Together, they’ve assembled a team of about 34 people spread across the globe. The company is remote-first, just like GitLab was, and it’s already processing an enormous amount of data through its tools. In the past month alone, they’ve handled trillions of tokens via integrations with various AI models.

“We thought we were just having a casual meet-and-greet, and 25 minutes in, Sid’s like, ‘Hey, can you start next week?'”

Scott Breitenother, co-founder and CEO of Kilo

That anecdote says a lot. Sid isn’t just investing money—he’s deeply involved, talking with Scott multiple times a day. It’s the kind of hands-on leadership that helped GitLab grow so fast.

How Kilo Works and What Sets It Apart

At its core, Kilo is an open-source AI coding agent that plugs right into popular editors like Visual Studio Code and JetBrains IDEs. You chat with it, describe what you want, and it handles everything from generating new code to debugging tricky bugs or writing documentation.

What makes Kilo stand out? For one, it’s completely open-source, which means the community can contribute directly. Developers love that transparency. Plus, it supports a wide range of AI models—including premium ones and more affordable options—so you can mix and match based on your needs and budget.

  • Multi-model support: Access the best models from different providers without lock-in.
  • Open-source extension: Anyone can improve it, and contributions are encouraged.
  • Agentic capabilities: It doesn’t just autocomplete—it can plan, execute, and iterate on complex tasks.
  • Privacy-focused: Your code stays local unless you choose to share telemetry.

I’ve tried a bunch of these tools over the years, and I have to say, the flexibility is refreshing. Too many products force you into one ecosystem, but Kilo feels more like a Swiss Army knife for AI coding.

Real-World Impact: How Developers Are Using Kilo

One engineer at a Dutch e-commerce startup told me he’s been using Kilo for months after trying just about everything else. He switched because it handled both high-end and budget-friendly models well, and the open-source nature meant the community was constantly improving it.

At his company, about 80% of the team now uses Kilo daily. One recent example: a teammate needed to build a complex SQL query. With Kilo, it took a single day instead of several. That’s the kind of time savings that adds up fast in a fast-moving startup.

It’s not just about speed, though. Developers say it makes coding more enjoyable. You spend less time on boilerplate and more on solving interesting problems. In my experience, that’s when the real creativity happens.

The Funding and What It Means for the Market

The $8 million seed round came from a solid group of investors: Breakers, Cota Capital, General Catalyst, Quiet Capital, and Tokyo Black. That’s not just money—it’s validation from people who know the space well.

The AI coding market is booming. Valuations are skyrocketing, and big players are buying up talent and companies. But there’s still room for newcomers, especially ones that prioritize openness and developer choice. Kilo’s approach could carve out a nice niche.

Key CompetitorFocusDifferentiator
CursorFull AI IDEHigh valuation, polished experience
GitHub CopilotAutocomplete + chatDeep Microsoft integration
Kilo CodeOpen-source agentModel flexibility, community-driven

Of course, the market is evolving quickly. Some tools are targeting non-technical users with no-code app builders, and Kilo has plans to expand there too. Sid mentioned they’re working on something that feels more like those popular low-code platforms—making it easier for beginners to get started.

Challenges Ahead and Why I’m Optimistic

It’s not all smooth sailing. The vibe coding space has its critics—some say it creates “technical debt” or makes code harder to maintain. Others worry about over-reliance on AI. Those are fair points, and Kilo will need to address them head-on.

But with Sid’s track record and the team’s focus on openness, I think they’re well-positioned. Open-source projects tend to build loyal communities, and in dev tools, community matters more than almost anything else.

Perhaps the most interesting aspect is how this fits into the bigger picture of AI transforming software development. We’re moving from tools that help us code to tools that let us direct the coding process. Kilo feels like a natural step in that evolution.

Looking Forward: What’s Next for Kilo

The team is growing fast, and they’re already the top AI coding tool on several platforms. With more funding, expect to see new features, better integrations, and maybe even that app builder Sid teased.

If you’re a developer, it’s worth giving Kilo a try. Install the extension, play around, and see if it clicks for you. In a world where AI is changing everything, tools like this make the future feel a little closer—and a lot more exciting.

I’ve been following the AI coding space for a while now, and this feels like one of those moments where something genuinely new might emerge. Kilo isn’t just another tool—it’s a bet on a more open, collaborative future for software development. And personally, I’m rooting for it.


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