What it is
Zed is a code editor built from scratch in Rust by the team that made Atom. It is known for speed and low memory use, and it has real-time collaboration built in. Its source is on GitHub under GPL and Apache licences, with about 92,000 stars and v1.25.2 released on 21 October 2026.
AI in Zed comes in three forms: edit predictions (Zed's take on tab completion), an agent that can edit across your project using Zed-hosted models or your own API keys, and support for outside agents such as Claude Agent and Codex CLI running inside the editor. Supported key providers include Anthropic, OpenAI, Google AI, Amazon Bedrock, Mistral, DeepSeek, OpenRouter, Vercel, GitHub Copilot, and local models via Ollama or LM Studio.
All AI features can be switched off entirely, which some developers value.
Our review
Zed's draw is the editor itself, and its AI pricing is among the fairest in the category. It is native, fast and light compared with VS Code forks like Cursor, and collaboration is part of the core rather than an extension. The free Personal plan gives unlimited AI through your own API keys or outside agents such as Claude Agent and Codex CLI, and every AI feature can be turned off.
Pro is $10 a month with $5 of hosted-model tokens included, then API list price plus 10%, billed at month end or every $10 of extra usage, under a spending cap you set. That markup is small next to bundled-credit plans, but $5 does not go far with frontier models, so heavy agent users effectively pay metered rates. Business is $30 per seat with no minimum and no included credits; contracts by order form start at 25 seats. Admins can block individual hosted models, switch off edit predictions across the organisation and lock data-sharing settings.
The privacy defaults are better than most rivals publish. According to Zed's AI privacy page, it keeps no prompts or code context unless you rate a response or opt in to training data, and its agreements with Anthropic, Google and OpenAI require zero data retention. There is one exception worth knowing: Anthropic retains prompts for Claude Fable 5 and 5.1 for at least 30 days for safety review, and Zed cannot opt out. Edit predictions send local editing context with each keystroke, and Zed only collects that for training when you opt in on an open-source project.
The gaps are ecosystem and enterprise readiness. Zed does not run VS Code extensions, so some language tools and niche plugins are missing. Its own agent is less developed than Cursor's background agents, and the pricing page says SSO, SAML and SCIM are planned but not available, a hard stop for companies whose security team requires identity-provider sign-in. No SOC 2 report is mentioned on the pricing or privacy pages.
Where it earns its place
A Rust or Go developer on a 16 GB laptop
Get a fast editor with AI help without a heavy Electron app
Personal is free with your own Anthropic or OpenAI key, or run Claude Agent or Codex CLI inside the editor on an existing subscription. Edit predictions need Pro at $10 a month for unlimited use.
An engineer at a company with a strict no-retention policy
Use AI in the editor without code being stored by the vendor
Zed-hosted models run under zero-retention agreements, except Claude Fable 5 and 5.1, which Anthropic keeps for 30 days. Alternatively point Zed at a local Ollama or LM Studio model so code never leaves the machine.
An engineering manager with a 20-developer team
Standardise on one editor with central control over AI spend
Business is $600 a month for 20 seats plus hosted usage at standard rates, or nothing extra if developers bring company keys. Admins can disable specific models and edit predictions, but sign-in cannot yet go through Okta or another identity provider.
Before you commit
- Setup
- Download the editor and sign in; adding an API key or outside agent takes a few minutes. Pro trial is 14 days with $5 of GPT-6 Luna usage, no card needed.
- Integrations
- Bring-your-own keys for Anthropic, OpenAI, Google AI, Bedrock, Mistral, DeepSeek, OpenRouter, Vercel and GitHub Copilot; local models via Ollama and LM Studio; outside agents such as Claude Agent and Codex CLI. API keys are stored in the system keychain.
- Data and privacy
- No prompts or code are retained by default; hosted providers are under zero-retention agreements apart from Anthropic's 30-day retention on Claude Fable 5 and 5.1. Training data is collected only on opt-in for open-source projects. No SOC 2 report is published on the pricing or privacy pages.
- Cost at scale
- Twenty Business seats cost $600 a month before AI usage, which is billed at standard rates or paid directly to your provider with your own keys. Order-form contracts start at 25 seats.
- Limits
- No VS Code extension compatibility. SSO, SAML and SCIM are not available yet, and admin controls cover only Zed's hosted services, since the open-source editor can be built without them.
What's good
- Native Rust editor, fast and light on memory
- Free plan allows unlimited AI with your own keys or outside agents
- Hosted usage at API list price plus 10%, with a spending cap
- Zero data retention agreements with Anthropic, Google and OpenAI
- Business admins can block models and lock data-sharing settings
What's not
- No VS Code extension support
- Built-in agent less capable than Cursor's
- SSO, SAML and SCIM not yet available on Business
- Only $5 of hosted tokens included in Pro
- Claude Fable 5 and 5.1 prompts retained 30 days by Anthropic
Best for
Developers who want a fast, lightweight editor and prefer to pick their own AI models or agents.
Alternatives
Zed: common questions
- Is Zed worth it?
- Zed is a fast native editor that treats AI as optional, with fair metered pricing, though its Business plan still lacks SSO and its agent trails Cursor's. We rate it 4.2 out of 5.
- How much does Zed cost?
- Personal: free, unlimited AI with your own keys or outside agents. Pro: $10/month with $5 of hosted-model tokens included, then API list price +10%, and unlimited edit predictions; 14-day trial. Business: $30/seat/month, hosted AI billed at standard rates.
- What are the downsides of Zed?
- No VS Code extension support; built-in agent less capable than Cursor's; sSO, SAML and SCIM not yet available on Business; only $5 of hosted tokens included in Pro; claude Fable 5 and 5.1 prompts retained 30 days by Anthropic.
- Who is Zed best for?
- Developers who want a fast, lightweight editor and prefer to pick their own AI models or agents.
- How much does Zed cost for a team or in production?
- Twenty Business seats cost $600 a month before AI usage, which is billed at standard rates or paid directly to your provider with your own keys. Order-form contracts start at 25 seats.
- Is Zed safe for company data?
- No prompts or code are retained by default; hosted providers are under zero-retention agreements apart from Anthropic's 30-day retention on Claude Fable 5 and 5.1. Training data is collected only on opt-in for open-source projects. No SOC 2 report is published on the pricing or privacy pages.
- What are the best Zed alternatives?
- The closest alternatives we have reviewed are Cursor, Devin (incl. Devin Desktop, formerly Windsurf), JetBrains AI (Junie, AI Assistant, Air) and Cline.
Answers checked Oct 22, 2026.
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