Vercel CEO Guillermo Rauch praises revenue growth and IPO readiness

Vercel, a developer of web development tools and hosting services, is experiencing significant growth due to the boom in AI-generated applications and agents. CEO Guillermo Rauch highlighted at the HumanX conference in San Francisco that now anyone can create an app, leading to a substantial increase in the platform's user base.

According to reports, Vercel's annual recurring revenue has surged from $100 million at the beginning of 2024 to $340 million by the end of February 2026. This impressive growth has attracted attention to the company's IPO plans. Rauch stated that Vercel is already operating as a public company and is preparing for a market debut.

While 2026 is expected to be a strong year for new listings, the current IPO market remains uncertain due to concerns over AI's impact on businesses. Nevertheless, Rauch assures that Vercel is ready for an IPO, although exact timelines are still unclear.

Rauch also emphasized that the market for application infrastructure is limitless. He believes that as more applications are created by AI agents, Vercel will become the primary platform for hosting all agent developments. According to him, 30% of the applications on the platform are already created by agents, highlighting their role in software production.

Vercel was last valued at $9.3 billion after raising $300 million in a Series F funding round, confirming investor interest in the company. It competes with players like Cloudflare and Amazon Web Services while also offering tools for creating websites and applications.