In this video, Matthew Berman introduces Cody, a new open-source coding assistant for Visual Studio Code (VSCode) that operates completely locally using the Code LLaMA model. Cody allows developers to have an autocompleting coding assistant without requiring an internet connection, which is ideal for situations like working on a flight or in areas without internet access. The video provides a step-by-step guide on how to set up Cody with VSCode and Olama, a tool for running the model locally. Berman demonstrates Cody’s capabilities, including code autocompletion, generating code snippets, editing existing code, and adding documentation. Cody also supports chat functionalities using various models, including the local Code LLaMA model, and offers additional features like explaining code, identifying code smells, and generating unit tests. Berman highlights Cody’s advantages over other coding assistants like GitHub Copilot, emphasizing its enhanced functionality and the ability to run locally.