Amazon Launches Kira: A New AI-Powered IDE Challenging the Developer Tool Landscape
Yesterday, Amazon surprised the developer community by releasing its own AI-powered Integrated Development Environment (IDE) named Kira. This new tool enters a crowded field of AI-assisted coding editors, competing alongside notable names like Cursor, Windsor, Firebase Studio, and GitHub Copilot. What sets Kira apart is its foundation on Claude Sonnet 4.0 and a unique approach called spec-driven development, which promises better handling of complex projects compared to its rivals. And for now, it’s completely free to use.
The Growing AI IDE Ecosystem
The AI coding assistant market is rapidly evolving. Just recently, Chinese developers introduced Kimmy K2, a lightweight, agentic coding model that rivals Claude in performance. These advancements hint at a future where AI tools might even automatically fix bugs in pirated software—potentially ending the endless internet ridicule of poorly maintained codebases.
In the backdrop of this surge, Amazon’s Kira aims to become a serious contender. The timing is notable: earlier this year, OpenAI’s planned $2 billion acquisition of Windsor, another popular VS Code fork, collapsed. Google then swooped in, recruiting Windsor’s key talent for $2.4 billion, leaving many employees in limbo. Meanwhile, Cognition, the company behind another IDE called Devon, acquired the remaining Windsor assets.
This frenzy underscores a simple truth: companies are willing to pay billions for developer tools that can capture the hearts and workflows of programmers. And the biggest winner so far has been Anthropic, mainly due to the success of its Claude Cloud Code CLI tool. Anthropic’s revenue skyrocketed from under $1 billion to over $4 billion in just one year, with Amazon as a major investor, having poured $8 billion into the company.
The Cursor Dilemma and Kira’s Opportunity
If you’re a user of Claude-powered IDEs, chances are you’ve tried Cursor. While Cursor is powerful, it’s heavily dependent on Anthropic’s Claude model, which puts the startup in a tight spot: it must price its services to eventually turn a profit while footing the bill for Claude’s usage. This led to recent controversial pricing changes that caught many users off guard, resulting in public apologies from Cursor.
Enter Kira, Amazon’s VS Code fork with similar features but a more attractive pricing model that could offer more value for less money. Whether this is a coincidence or a strategic move to undercut Cursor remains unclear, but it certainly shakes up the market.
Hands-On With Kira: A Different Approach to AI Coding
After testing Kira, the user interface impresses with its clean design but feels somewhat slower than competitors. Some expected early-stage bugs appeared, such as missing features like chat checkpoints and occasional delays due to server overload.
The most distinctive feature of Kira is its spec-driven development workflow. Instead of rushing to generate code immediately, Kira encourages developers to begin with a requirements markdown file that outlines user stories and acceptance criteria. This is followed by a design document detailing implementation plans, including component structure, testing strategies, and error handling.
Only after these planning stages does Kira proceed to actual code generation, combining requirements and design into a comprehensive implementation plan. This step-by-step process may feel slower but is ideal for serious software projects or team environments where design documentation and consistent code quality are critical.
Who Is Kira For?
Kira seems tailored for enterprise developers who value thorough planning and collaboration over rapid prototyping. Currently, the IDE is closed-source and exclusively powered by Claude, but Amazon plans to integrate other AI models in the future.
Since Kira is free to use at launch, it’s worth trying out—especially if you’re looking for an AI coding assistant that emphasizes structured development and quality assurance. Whether it can dethrone established players like Cursor remains to be seen.
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In summary, Amazon’s entry into the AI IDE space with Kira marks an exciting new chapter in developer tooling. With its spec-driven methodology and strong backing, Kira could reshape how coding AI assists teams in building complex software. As always, the race to win developers' loyalty continues—and that means better tools and experiences for everyone.
Thanks for reading The Code Report. Stay tuned for more updates on the future of coding and AI.
Disclosure: This post is sponsored by Brilliant.org.