The Chat SDK is a free, open-source template for building powerful chatbot applications. It provides a complete production-ready application built on Next.js App Router with the AI SDK at its core, allowing users to use any AI model and provider throughout their application. The SDK differentiates itself with features such as generative UI, customizable artifacts, and in-browser code execution. With these advanced capabilities, users can create dynamic interfaces, build specialized components, and write and run code directly in the browser. The documentation at chat-sdk.dev covers everything from project setup to customization instructions, providing a foundation for building incredible chat applications.