M&A

Anaconda buys Kilo Code to bring its 3M developers into the enterprise fold

What's the deal? Anaconda has acquired Kilo CodeDealroom has a profile for this one. Try Dealroom →, an open source, model-agnostic agentic engineering platform used by more than 3 million developers across VS Code, JetBrains, web, and CLI. Terms were not disclosed. Kilo processes trillions of tokens per month across commercial and open-weight models.

What does each side bring? Kilo lets developers run over 500 models with self-hosted options and automatic model selection per task, with no vendor lock-in. Anaconda, which provides AI-native development tooling to 95% of the Fortune 500, brings governed packages, secure environments, and enterprise trust built over a decade.

The strategic rationale: Kilo adds agentic engineering to the Anaconda Platform, extending its AI workspaces deeper into the developer's IDE and CLI. The aim is to carry a single trusted foundation from a builder's first prompt through to production.

Why now? Anaconda says 80% of AI projects fail to reach production, and as AI use scales, token costs are outpacing return on investment. It frames the deal as giving enterprises speed without losing control of what ships or failing compliance audits.

The acquisition builds on Anaconda's purchase of OuterboundsDealroom has a profile for this one. Try Dealroom → earlier in 2026, which added production-grade AI orchestration to its platform.

What they're saying: "Kilo and Anaconda are a rare fit: almost no overlap, and what each of us lacks, the other already has," said Sid SijbrandijDealroom has a profile for this one. Try Dealroom →, co-founder of Kilo Code and co-founder and executive chair at GitLab.

Chief executive officer David DeSanto said the goal is to ensure "that whatever an agent builds from that point forward runs on a foundation enterprises can trust."

What could go wrong? Some promised capabilities are not yet live. Anaconda says the deeper connection between Kilo's tools and its governed environments is "a direction Anaconda is building toward, not a capability available today."

The signal: The deal reflects consolidation in AI-native development, where enterprises increasingly want agentic tooling paired with governance, cost control, and security at trillion-token scale.

Read more: Associated Press

Image credit: Dave_B_

Source: dealroom

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