Zed has leveraged its longstanding expertise in text manipulation to integrate large language models (LLMs) into its development workflows, culminating in the launch of Zed AI. This new service, developed in collaboration with AI company Anthropic, offers an AI-enabled coding environment within the Zed text editor, utilizing Anthropic's Claude 3.5 Sonnet for enhanced productivity. Zed AI features an assistant panel and inline transformations that allow developers to interact with and manipulate code using natural language prompts, providing transparency and control over AI interactions. The integration includes features such as slash commands for context building, a /workflow command for complex tasks, and performance optimization through Prompt Caching. As Zed continues to refine its AI capabilities, it invites developers to explore customizations and contribute to its open-source codebase, fostering a collaborative approach to AI-assisted development.