The article explains how to build a basic coding agent using a large language model (LLM) and a set of tools, demonstrating that the core of AI coding assistants is not magic, but rather a simple loop of conversation and tool execution. The agent is built using 200 lines of Python code and utilizes three main tools: reading files, listing files, and editing files. The article provides a step-by-step guide on how to implement these tools and integrate them with an LLM. The resulting agent can perform tasks such as creating new files, editing existing files, and navigating directories.