Despite growing enterprise investment in AI, many organizations struggle to move projects from experimentation to production, with an estimated 80% of initiatives failing to reach deployment. The challenge is no longer whether to adopt AI, but how to deploy it safely, affordably, and at scale.
Anaconda’s acquisition of Kilo Code builds on its earlier acquisition of Outerbounds, extending production-grade AI orchestration from the Anaconda Platform into AI-native development environments where builders create and deploy applications.
Kilo grew from zero to over 3 million developers in sixteen months because developers recommended it to other developers, drawn to its open source roots and the seamless access to the latest AI models from leading and emerging AI labs, with no vendor lock-in.
They are recognized by Gartner as a company operating in the center of the AI economy: one of the highest-volume agentic engineering products within the AI-native development market, processing trillions of tokens per month across commercial and open-weight AI models within their cloud environment and customer infrastructure.
For CTOs and CIOs, the appeal runs deeper than happy builders. As AI use scales, token costs are outpacing ROI. Kilo gives enterprises AI on their own terms: agents built into the environments developers already use, with self-hosted options, the freedom to run over 500 models, and automatic selection of the best model for each task. That balance of choice and control is exactly what enterprises require to operate at trillion-token scale.
That is where Anaconda comes in. Kilo becomes the place where a builder’s first prompt turns into an agent’s first task in a chain of events that will eventually lead to an AI-native workload being pushed into production. This extends what AI workspaces means within the Anaconda Platform, from the packages and models it governs today, to the tools where builders rely on work begins.
Kilo adds its agentic engineering capabilities to the Anaconda Platform, available today in the environments developers already use, extending Anaconda’s AI workspaces capability deeper into the developer’s IDE and CLI.
Anaconda will also connect that experience to the governed packages, AI models, and environments that already support AI-native development for 95% of the Fortune 500, so developers carry the same trusted foundation from their first prompt through production. That deeper connection is a direction Anaconda is building toward, not a capability available today.
“Every enterprise we talk to is asking the same question: how do we let our builders move as fast as AI now allows, without losing control of what ships or failing a compliance audit,” said David DeSanto, CEO of Anaconda. “Kilo is where that question starts, at the moment a builder writes the first prompt. Our job is to make sure that whatever an agent builds from that point forward runs on a foundation enterprises can trust, all the way to a future where that trust has to hold at the scale enterprises require without compromising on security.”
“Kilo and Anaconda are a rare fit: almost no overlap, and what each of us lacks, the other already has,” said Sid Sijbrandij, co-founder of Kilo Code and co-founder & executive chair at GitLab. “Kilo has many enthusiastic users doing agentic engineering with the freedom to use any model and any provider. Anaconda spent over a decade building enterprise trust; from packages to secure environments. The combination compliments each other very well. I’m delighted Kilo was acquired by Anaconda.”
“We’re thrilled to join Anaconda,” said Scott Breitenother, CEO and co-founder of Kilo Code. “Anaconda has spent a decade earning trust across the open source community and inside the largest enterprises in the world, trust we’ve admired and now get to build on directly. We’re excited to bring Kilo to Anaconda’s community and support the trusted foundation for AI-native development the company pioneered.”
Kilo remains available today with no changes to existing products, plans, or support for current users. Anaconda will share details on product integration as they become available. Users can get started with AI coding by installing Kilo today.
For more information, visit: https://www.anaconda.com/
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