Vercel: AI Agents Propel It to the Stock Market

Vercel: Explosive Growth Driven by AI Agents

While many startups struggle to adapt to the era of artificial intelligence, Vercel, a web development and hosting platform, is experiencing impressive growth. Founded ten years ago, the company is benefiting from the rise of AI-generated applications. According to Guillermo Rauch, CEO of Vercel, the creation of applications by non-developers has significantly increased. At the HumanX conference in San Francisco, he stated, “When I started this company, only tens of millions of people could deploy. Now, we see that everyone in the world can create an application.”

This explosion in application creation has been a major asset for Vercel. The company's annual recurring revenue surged from $100 million at the beginning of 2024 to a projected $340 million by the end of February 2026, according to Forbes.

Preparing for an IPO

In light of this growth, Guillermo Rauch was asked about Vercel's plans for an initial public offering (IPO). While he did not provide a specific timeline, he asserted that the company already operates with the discipline of a public entity. “Vercel is very much a public company in operation,” he said. He added that the company is ready and preparing more each day.

The year 2026 was anticipated to be a strong year for new listings. However, a significant sell-off in the software sector, fueled by fears of AI-related disruption, has effectively frozen the IPO pipeline. Outside of SpaceX, Anthropic, and OpenAI, discussions about public debuts have largely ceased. Once one of these companies goes public, all expected to be resounding successes, the window may reopen.

The Impact of AI Agents on Vercel

Guillermo Rauch also highlighted the growing importance of AI agents in application development. According to him, 30% of the applications running on Vercel's platform already come from these agents. He estimates that this trend will accelerate, making the creation of custom solutions more accessible than purchasing existing software. “All this software… it has to go somewhere, and we believe it will go to Vercel,” he stated.

When asked what Wall Street should know about Vercel, Rauch replied, “The total addressable market for infrastructure has now increased, and it simply has no ceiling.”

In September, Vercel was valued at $9.3 billion after raising $300 million in a Series F round led by Accel. The company positions itself as a major competitor to Cloudflare and Amazon Web Services in the hosting space, while also offering v0, a coding tool for creating websites and applications.