AI Tools Compared

Finding affordable AI tools requires understanding the true cost structure. This guide breaks down the cheapest options and explains what you get at each price point.

Understanding the Two Tools

Continue Dev is an open source AI coding assistant that runs locally or connects to various LLM providers. It started as a VS Code extension and has expanded to support JetBrains IDEs and other editors. The free tier provides access to open source models and allows you to connect your own API keys for more powerful models.

Cody Free is the free tier of Sourcegraph’s AI coding assistant. It uses Sourcegraph’s powerful code intelligence platform to understand your entire codebase, not just the file you are currently editing. The free tier includes basic autocomplete, chat functionality, and context-aware code explanations.

Code Understanding and Context

The most significant difference between these two tools lies in how they understand your codebase.

Continue Dev Approach

Continue Dev uses a hybrid approach. It indexes your local files and can pull in context from git history. When you ask a question or request code generation, it scans the relevant files in your project to provide context to the LLM.

// .continue/config.json - Basic Continue Dev configuration
{
  "models": [
    {
      "model": "claude-3-sonnet-20240229",
      "provider": "anthropic",
      "apiKey": "${ANTHROPIC_API_KEY}"
    }
  ],
  "embeddingsProvider": {
    "provider": "transformers"
  }
}

The free tier works well for single-file or small-project context. You can manually highlight code sections to include in your prompt, giving you fine-grained control over what the AI sees.

Cody Free Approach

Cody Free taps into Sourcegraph’s code graph capabilities. This means it understands code relationships across your entire repository—including functions defined in other files, dependencies, and even code in node_modules if configured.

# Cody configuration in Sourcegraph
cody:
  enabled: true
  context:
    # Cody automatically includes relevant code from the entire repo
    includeCrossRepository: true
    smartContext: true

The advantage becomes apparent when working with large codebases. If you ask Cody to explain how authentication works in your app, it can trace the flow across multiple files and directories without manual selection.

Editor Integration and User Experience

Continue Dev in VS Code

Continue Dev integrates deeply with VS Code and JetBrains IDEs. The free version provides:

The interface feels familiar if you have used GitHub Copilot. The main advantage is transparency—you see exactly what context is being sent to the AI model.

Cody in VS Code

Cody offers a similar chat interface but with some distinct features:

The chat interface is clean and the suggestions appear in a dedicated sidebar. One notable difference: Cody Free limits the number of messages per month on the free tier.

Performance in Real-World Scenarios

Autocomplete Speed

In testing with a medium-sized React project (approximately 50,000 lines of code), both tools provide fast suggestions. Continue Dev tends to respond slightly faster when using local models, while Cody’s suggestions sometimes take an extra second due to the additional codebase indexing.

Code Generation Quality

For boilerplate code, both tools perform similarly. The difference emerges with context-dependent tasks:

Continue Dev excels when you provide explicit context. If you paste a specific function and ask for a test, it works well because you control the input.

Cody shines when exploring unfamiliar code. Its ability to trace relationships means it can answer “where is this function called?” or “what values does this configuration accept?” without you manually locating the relevant files.

Handling Large Codebases

For projects with multiple packages or monorepos, Cody has the edge. Its code graph understanding means it can distinguish between different implementations of similarly-named functions across packages. Continue Dev treats each file more independently, which can lead to less precise suggestions in complex projects.

Limitations of Each Free Tier

Continue Dev Free Limitations

Cody Free Limitations

Pricing for Power Users

If you decide to upgrade, here is how the pricing compares:

Feature Continue Dev Pro Cody Pro

|———|——————|———-|

Monthly Cost $20/month (bring your own key) $19/month
Model Access All major LLMs Sourcegraph-optimized
Team Features Basic Advanced
Code Search Via editor Native

Continue Dev’s pricing is more transparent since you pay for API usage directly. Cody Pro includes unlimited messages and advanced context features.

Which Should You Choose

Choose Continue Dev Free if you want maximum control over your AI model, prefer running locally, or already have API keys for major LLMs. It works exceptionally well for developers who understand prompt engineering and want to fine-tune their AI interactions.

Choose Cody Free if you work with large codebases and want automatic context understanding without manual selection. The integration with Sourcegraph’s code intelligence provides unique value that continues to improve as Sourcegraph develops their platform.

For pure open source enthusiasts, Continue Dev’s commitment to open source (the extension itself is open source) may be a deciding factor. For teams already using Sourcegraph or needing advanced code navigation, Cody integrates more into existing workflows.

Installation and Setup Comparison

Setting up each tool correctly determines whether you get value from the free tier:

Continue Dev Installation:

# Install VS Code extension
# https://marketplace.visualstudio.com/items?itemName=Continue.continue

# For local model setup (e.g., Ollama)
pip install ollama
ollama pull mistral

# Configure .continue/config.json
cat > ~/.continue/config.json << 'EOF'
{
  "models": [
    {
      "model": "mistral",
      "provider": "ollama",
      "apiBase": "http://localhost:11434"
    }
  ]
}
EOF

Cody Installation:

# Install VS Code extension
# https://marketplace.visualstudio.com/items?itemName=sourcegraph.cody-ai

# Sign up for Sourcegraph account
# https://sourcegraph.com/sign-up

Cody requires less configuration since it’s cloud-hosted. Continue Dev offers more flexibility at the cost of additional setup.

Real-World Performance Testing

For a concrete comparison, testing with actual codebases reveals differences:

Test Scenario: React Component Refactoring

Continue Dev response time: 2-5 seconds for inline suggestions Cody response time: 3-7 seconds (network roundtrip to Sourcegraph)

Both tools suggest similar code but with different verbosity levels. Cody tends toward more verbose explanations, while Continue Dev suggestions are typically concise.

Test Scenario: Understanding External Function

Question: “Where is UserService.findById called in the codebase?”

Continue Dev: Requires manual context selection or /repo command Cody: Automatically traces calls across the repository

This is where Cody’s code graph capabilities provide clear advantages for codebases with complex dependencies.

Cost Breakdown for Scaling

If you outgrow the free tier, understanding upgrade paths matters:

Tier Continue Dev Cody
Free Localhost models only 50 messages/month
Pro (monthly) $20 + API costs $19
Pro (yearly) $180 + API costs $190
Model flexibility All LLM providers Sourcegraph-optimized

Continue Dev’s pricing is transparent—you pay only for API consumption beyond the local model. If using Claude API, expect $5-20/month for moderate usage.

Cody Pro includes unlimited messages and costs a flat $19/month regardless of usage volume.

Decision Matrix for Tool Selection

Create your own assessment by rating your priorities:

If you score high on these factors, choose Continue Dev:

If you score high on these factors, choose Cody Free:

Practical Workflow Examples

Continue Dev Workflow:

1. Open your project in VS Code
2. Highlight the code you want explained
3. Press Ctrl+L to open chat
4. Ask: "Explain this authentication flow"
5. Continue Dev analyzes only selected code

Cody Workflow:

1. Open your project in VS Code
2. Type @-mention the symbol you want explained
3. Ask: "Show me all usages of UserService"
4. Cody searches across your entire codebase

The Continue Dev approach gives explicit control; Cody’s approach automates discovery.

Migration Path Between Tools

If you start with one tool and want to switch:

From Continue Dev to Cody: Your habits transfer easily. Both use VS Code interfaces and similar chat interactions. You’ll need to adjust to Cody’s automatic context, which requires less manual selection.

From Cody to Continue Dev: You lose automatic code graph features but gain model flexibility. Set up your preferred LLM (Claude, GPT-4, or Mistral) in the configuration.

Neither tool locks you into its ecosystem—switching between them takes minutes.

Open Source Philosophy

Continue Dev’s commitment to open source appeals to developers with strong free-software values:

Cody is not open source, though Sourcegraph is a major contributor to open-source code intelligence projects.

If open-source tooling is a requirement, Continue Dev provides clearer alignment.

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