diff --git a/Cargo.lock b/Cargo.lock
index 021f3a1a72..d451f4ed14 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -19,6 +19,23 @@ dependencies = [
  "workspace",
 ]
 
+[[package]]
+name = "activity_indicator2"
+version = "0.1.0"
+dependencies = [
+ "auto_update",
+ "editor",
+ "futures 0.3.28",
+ "gpui2",
+ "language2",
+ "project",
+ "settings2",
+ "smallvec",
+ "theme2",
+ "util",
+ "workspace",
+]
+
 [[package]]
 name = "addr2line"
 version = "0.17.0"
@@ -10796,6 +10813,7 @@ dependencies = [
 name = "zed2"
 version = "0.109.0"
 dependencies = [
+ "activity_indicator2",
  "anyhow",
  "async-compression",
  "async-recursion 0.3.2",
diff --git a/Cargo.toml b/Cargo.toml
index 82af9265dd..41a7651c9c 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,7 @@
 [workspace]
 members = [
     "crates/activity_indicator",
+    "crates/activity_indicator2",
     "crates/ai",
     "crates/assistant",
     "crates/audio",
diff --git a/crates/activity_indicator2/Cargo.toml b/crates/activity_indicator2/Cargo.toml
new file mode 100644
index 0000000000..5d9979c310
--- /dev/null
+++ b/crates/activity_indicator2/Cargo.toml
@@ -0,0 +1,26 @@
+[package]
+name = "activity_indicator2"
+version = "0.1.0"
+edition = "2021"
+publish = false
+
+[lib]
+path = "src/activity_indicator2.rs"
+doctest = false
+
+[dependencies]
+auto_update = { path = "../auto_update" }
+editor = { path = "../editor" }
+language2 = { path = "../language2" }
+gpui2= { path = "../gpui2" }
+project = { path = "../project" }
+settings2 = { path = "../settings2" }
+util = { path = "../util" }
+theme2 = { path = "../theme2" }
+workspace = { path = "../workspace" }
+
+futures.workspace = true
+smallvec.workspace = true
+
+[dev-dependencies]
+editor = { path = "../editor", features = ["test-support"] }
diff --git a/crates/activity_indicator2/src/activity_indicator2.rs b/crates/activity_indicator2/src/activity_indicator2.rs
new file mode 100644
index 0000000000..a9b358300b
--- /dev/null
+++ b/crates/activity_indicator2/src/activity_indicator2.rs
@@ -0,0 +1,363 @@
+use auto_update::{AutoUpdateStatus, AutoUpdater, DismissErrorMessage};
+use editor::Editor;
+use futures::StreamExt;
+use gpui2::{
+    actions, anyhow,
+    elements::*,
+    platform::{CursorStyle, MouseButton},
+    AppContext, Entity, ModelHandle, View, ViewContext, ViewHandle,
+};
+use language::{LanguageRegistry, LanguageServerBinaryStatus};
+use project::{LanguageServerProgress, Project};
+use smallvec::SmallVec;
+use std::{cmp::Reverse, fmt::Write, sync::Arc};
+use util::ResultExt;
+use workspace::{item::ItemHandle, StatusItemView, Workspace};
+
+actions!(lsp_status, [ShowErrorMessage]);
+
+const DOWNLOAD_ICON: &str = "icons/download.svg";
+const WARNING_ICON: &str = "icons/warning.svg";
+
+pub enum Event {
+    ShowError { lsp_name: Arc<str>, error: String },
+}
+
+pub struct ActivityIndicator {
+    statuses: Vec<LspStatus>,
+    project: ModelHandle<Project>,
+    auto_updater: Option<ModelHandle<AutoUpdater>>,
+}
+
+struct LspStatus {
+    name: Arc<str>,
+    status: LanguageServerBinaryStatus,
+}
+
+struct PendingWork<'a> {
+    language_server_name: &'a str,
+    progress_token: &'a str,
+    progress: &'a LanguageServerProgress,
+}
+
+#[derive(Default)]
+struct Content {
+    icon: Option<&'static str>,
+    message: String,
+    on_click: Option<Arc<dyn Fn(&mut ActivityIndicator, &mut ViewContext<ActivityIndicator>)>>,
+}
+
+pub fn init(cx: &mut AppContext) {
+    cx.add_action(ActivityIndicator::show_error_message);
+    cx.add_action(ActivityIndicator::dismiss_error_message);
+}
+
+impl ActivityIndicator {
+    pub fn new(
+        workspace: &mut Workspace,
+        languages: Arc<LanguageRegistry>,
+        cx: &mut ViewContext<Workspace>,
+    ) -> ViewHandle<ActivityIndicator> {
+        let project = workspace.project().clone();
+        let auto_updater = AutoUpdater::get(cx);
+        let this = cx.add_view(|cx: &mut ViewContext<Self>| {
+            let mut status_events = languages.language_server_binary_statuses();
+            cx.spawn(|this, mut cx| async move {
+                while let Some((language, event)) = status_events.next().await {
+                    this.update(&mut cx, |this, cx| {
+                        this.statuses.retain(|s| s.name != language.name());
+                        this.statuses.push(LspStatus {
+                            name: language.name(),
+                            status: event,
+                        });
+                        cx.notify();
+                    })?;
+                }
+                anyhow::Ok(())
+            })
+            .detach();
+            cx.observe(&project, |_, _, cx| cx.notify()).detach();
+            if let Some(auto_updater) = auto_updater.as_ref() {
+                cx.observe(auto_updater, |_, _, cx| cx.notify()).detach();
+            }
+            cx.observe_active_labeled_tasks(|_, cx| cx.notify())
+                .detach();
+
+            Self {
+                statuses: Default::default(),
+                project: project.clone(),
+                auto_updater,
+            }
+        });
+        cx.subscribe(&this, move |workspace, _, event, cx| match event {
+            Event::ShowError { lsp_name, error } => {
+                if let Some(buffer) = project
+                    .update(cx, |project, cx| project.create_buffer(error, None, cx))
+                    .log_err()
+                {
+                    buffer.update(cx, |buffer, cx| {
+                        buffer.edit(
+                            [(0..0, format!("Language server error: {}\n\n", lsp_name))],
+                            None,
+                            cx,
+                        );
+                    });
+                    workspace.add_item(
+                        Box::new(
+                            cx.add_view(|cx| Editor::for_buffer(buffer, Some(project.clone()), cx)),
+                        ),
+                        cx,
+                    );
+                }
+            }
+        })
+        .detach();
+        this
+    }
+
+    fn show_error_message(&mut self, _: &ShowErrorMessage, cx: &mut ViewContext<Self>) {
+        self.statuses.retain(|status| {
+            if let LanguageServerBinaryStatus::Failed { error } = &status.status {
+                cx.emit(Event::ShowError {
+                    lsp_name: status.name.clone(),
+                    error: error.clone(),
+                });
+                false
+            } else {
+                true
+            }
+        });
+
+        cx.notify();
+    }
+
+    fn dismiss_error_message(&mut self, _: &DismissErrorMessage, cx: &mut ViewContext<Self>) {
+        if let Some(updater) = &self.auto_updater {
+            updater.update(cx, |updater, cx| {
+                updater.dismiss_error(cx);
+            });
+        }
+        cx.notify();
+    }
+
+    fn pending_language_server_work<'a>(
+        &self,
+        cx: &'a AppContext,
+    ) -> impl Iterator<Item = PendingWork<'a>> {
+        self.project
+            .read(cx)
+            .language_server_statuses()
+            .rev()
+            .filter_map(|status| {
+                if status.pending_work.is_empty() {
+                    None
+                } else {
+                    let mut pending_work = status
+                        .pending_work
+                        .iter()
+                        .map(|(token, progress)| PendingWork {
+                            language_server_name: status.name.as_str(),
+                            progress_token: token.as_str(),
+                            progress,
+                        })
+                        .collect::<SmallVec<[_; 4]>>();
+                    pending_work.sort_by_key(|work| Reverse(work.progress.last_update_at));
+                    Some(pending_work)
+                }
+            })
+            .flatten()
+    }
+
+    fn content_to_render(&mut self, cx: &mut ViewContext<Self>) -> Content {
+        // Show any language server has pending activity.
+        let mut pending_work = self.pending_language_server_work(cx);
+        if let Some(PendingWork {
+            language_server_name,
+            progress_token,
+            progress,
+        }) = pending_work.next()
+        {
+            let mut message = language_server_name.to_string();
+
+            message.push_str(": ");
+            if let Some(progress_message) = progress.message.as_ref() {
+                message.push_str(progress_message);
+            } else {
+                message.push_str(progress_token);
+            }
+
+            if let Some(percentage) = progress.percentage {
+                write!(&mut message, " ({}%)", percentage).unwrap();
+            }
+
+            let additional_work_count = pending_work.count();
+            if additional_work_count > 0 {
+                write!(&mut message, " + {} more", additional_work_count).unwrap();
+            }
+
+            return Content {
+                icon: None,
+                message,
+                on_click: None,
+            };
+        }
+
+        // Show any language server installation info.
+        let mut downloading = SmallVec::<[_; 3]>::new();
+        let mut checking_for_update = SmallVec::<[_; 3]>::new();
+        let mut failed = SmallVec::<[_; 3]>::new();
+        for status in &self.statuses {
+            let name = status.name.clone();
+            match status.status {
+                LanguageServerBinaryStatus::CheckingForUpdate => checking_for_update.push(name),
+                LanguageServerBinaryStatus::Downloading => downloading.push(name),
+                LanguageServerBinaryStatus::Failed { .. } => failed.push(name),
+                LanguageServerBinaryStatus::Downloaded | LanguageServerBinaryStatus::Cached => {}
+            }
+        }
+
+        if !downloading.is_empty() {
+            return Content {
+                icon: Some(DOWNLOAD_ICON),
+                message: format!(
+                    "Downloading {} language server{}...",
+                    downloading.join(", "),
+                    if downloading.len() > 1 { "s" } else { "" }
+                ),
+                on_click: None,
+            };
+        } else if !checking_for_update.is_empty() {
+            return Content {
+                icon: Some(DOWNLOAD_ICON),
+                message: format!(
+                    "Checking for updates to {} language server{}...",
+                    checking_for_update.join(", "),
+                    if checking_for_update.len() > 1 {
+                        "s"
+                    } else {
+                        ""
+                    }
+                ),
+                on_click: None,
+            };
+        } else if !failed.is_empty() {
+            return Content {
+                icon: Some(WARNING_ICON),
+                message: format!(
+                    "Failed to download {} language server{}. Click to show error.",
+                    failed.join(", "),
+                    if failed.len() > 1 { "s" } else { "" }
+                ),
+                on_click: Some(Arc::new(|this, cx| {
+                    this.show_error_message(&Default::default(), cx)
+                })),
+            };
+        }
+
+        // Show any application auto-update info.
+        if let Some(updater) = &self.auto_updater {
+            return match &updater.read(cx).status() {
+                AutoUpdateStatus::Checking => Content {
+                    icon: Some(DOWNLOAD_ICON),
+                    message: "Checking for Zed updates…".to_string(),
+                    on_click: None,
+                },
+                AutoUpdateStatus::Downloading => Content {
+                    icon: Some(DOWNLOAD_ICON),
+                    message: "Downloading Zed update…".to_string(),
+                    on_click: None,
+                },
+                AutoUpdateStatus::Installing => Content {
+                    icon: Some(DOWNLOAD_ICON),
+                    message: "Installing Zed update…".to_string(),
+                    on_click: None,
+                },
+                AutoUpdateStatus::Updated => Content {
+                    icon: None,
+                    message: "Click to restart and update Zed".to_string(),
+                    on_click: Some(Arc::new(|_, cx| {
+                        workspace::restart(&Default::default(), cx)
+                    })),
+                },
+                AutoUpdateStatus::Errored => Content {
+                    icon: Some(WARNING_ICON),
+                    message: "Auto update failed".to_string(),
+                    on_click: Some(Arc::new(|this, cx| {
+                        this.dismiss_error_message(&Default::default(), cx)
+                    })),
+                },
+                AutoUpdateStatus::Idle => Default::default(),
+            };
+        }
+
+        if let Some(most_recent_active_task) = cx.active_labeled_tasks().last() {
+            return Content {
+                icon: None,
+                message: most_recent_active_task.to_string(),
+                on_click: None,
+            };
+        }
+
+        Default::default()
+    }
+}
+
+impl Entity for ActivityIndicator {
+    type Event = Event;
+}
+
+impl View for ActivityIndicator {
+    fn ui_name() -> &'static str {
+        "ActivityIndicator"
+    }
+
+    fn render(&mut self, cx: &mut ViewContext<Self>) -> AnyElement<Self> {
+        let Content {
+            icon,
+            message,
+            on_click,
+        } = self.content_to_render(cx);
+
+        let mut element = MouseEventHandler::new::<Self, _>(0, cx, |state, cx| {
+            let theme = &theme::current(cx).workspace.status_bar.lsp_status;
+            let style = if state.hovered() && on_click.is_some() {
+                theme.hovered.as_ref().unwrap_or(&theme.default)
+            } else {
+                &theme.default
+            };
+            Flex::row()
+                .with_children(icon.map(|path| {
+                    Svg::new(path)
+                        .with_color(style.icon_color)
+                        .constrained()
+                        .with_width(style.icon_width)
+                        .contained()
+                        .with_margin_right(style.icon_spacing)
+                        .aligned()
+                        .into_any_named("activity-icon")
+                }))
+                .with_child(
+                    Text::new(message, style.message.clone())
+                        .with_soft_wrap(false)
+                        .aligned(),
+                )
+                .constrained()
+                .with_height(style.height)
+                .contained()
+                .with_style(style.container)
+                .aligned()
+        });
+
+        if let Some(on_click) = on_click.clone() {
+            element = element
+                .with_cursor_style(CursorStyle::PointingHand)
+                .on_click(MouseButton::Left, move |_, this, cx| on_click(this, cx));
+        }
+
+        element.into_any()
+    }
+}
+
+impl StatusItemView for ActivityIndicator {
+    fn set_active_pane_item(&mut self, _: Option<&dyn ItemHandle>, _: &mut ViewContext<Self>) {}
+}
diff --git a/crates/gpui/src/platform/mac/window.rs b/crates/gpui/src/platform/mac/window.rs
index 670a994d5f..685d8c2b85 100644
--- a/crates/gpui/src/platform/mac/window.rs
+++ b/crates/gpui/src/platform/mac/window.rs
@@ -82,7 +82,7 @@ const NSWindowAnimationBehaviorUtilityWindow: NSInteger = 4;
 
 #[ctor]
 unsafe fn build_classes() {
-    ::util::gpui1_loaded();
+    ::util::gpui2_loaded();
     WINDOW_CLASS = build_window_class("GPUIWindow", class!(NSWindow));
     PANEL_CLASS = build_window_class("GPUIPanel", class!(NSPanel));
     VIEW_CLASS = {
diff --git a/crates/zed2/Cargo.toml b/crates/zed2/Cargo.toml
index 1d90536a33..cb6cfab8ce 100644
--- a/crates/zed2/Cargo.toml
+++ b/crates/zed2/Cargo.toml
@@ -16,7 +16,7 @@ path = "src/main.rs"
 
 [dependencies]
 # audio = { path = "../audio" }
-# activity_indicator = { path = "../activity_indicator" }
+activity_indicator2 = { path = "../activity_indicator2" }
 # auto_update = { path = "../auto_update" }
 # breadcrumbs = { path = "../breadcrumbs" }
 call2 = { path = "../call2" }
diff --git a/crates/zed2/src/main.rs b/crates/zed2/src/main.rs
index 44a441db0b..9122293c2a 100644
--- a/crates/zed2/src/main.rs
+++ b/crates/zed2/src/main.rs
@@ -191,7 +191,7 @@ fn main() {
         // journal::init(app_state.clone(), cx);
         // language_selector::init(cx);
         // theme_selector::init(cx);
-        // activity_indicator::init(cx);
+        activity_indicator2::init(cx);
         // language_tools::init(cx);
         call2::init(app_state.client.clone(), app_state.user_store.clone(), cx);
         // collab_ui::init(&app_state, cx);