A developer is creating an SMS chatbot using LangChain Prompt Templates, OpenAI, Twilio Programmable Messaging, and Python. The chatbot will respond to user queries about the NBA team Warriors using a template that shapes the queries and answers from the LLM. The project requires setting up an OpenAI account, installing necessary Python packages, configuring ngrok for the Flask application, and creating a .env file with the API key. The code uses Flask, Twilio, and LangChain to build the chatbot, which can be run on a local machine using ngrok. The developer can now text their Twilio number to interact with the chatbot.