Vercel CEO Guillermo Rauch has hinted that the company is preparing for an IPO, as strong growth driven by AI tools boosts its business.
Vercel, a 10-year-old platform known for hosting websites and developer tools, is seeing rapid growth in the age of AI. The rise of tools like ChatGPT has made it easier for non-developers to build apps, and this trend is helping Vercel expand quickly.
Speaking at a conference in San Francisco, Rauch said that earlier only a limited number of people could deploy apps. Now, almost anyone can create and launch an app using AI. This shift is increasing demand for platforms like Vercel.
The company’s revenue shows this growth clearly. Its annual recurring revenue (ARR) jumped from $100 million in early 2024 to around $340 million by early 2026. This strong performance suggests that Vercel is moving closer to becoming a public company.
Rauch explained that Vercel is already operating like a public company, even though there is no fixed IPO timeline yet. He said the company is getting more ready every day.
Vercel is also benefiting from AI agents that automatically build and deploy apps. Around 30% of apps on its platform are already created by these agents. This shows how fast AI is changing the software industry.
The company competes with big players like Amazon Web Services and Cloudflare. It also offers tools like v0, which helps users create apps quickly.
With a valuation of $9.3 billion, Vercel is betting that AI-driven app creation will continue to grow. As more software is built by AI, the need for hosting platforms will rise—and Vercel aims to be a leader in this space.
