Vercel CEO Guillermo Rauch signals IPO readiness as AI agent revenue increases

While many startups founded before the advent of ChatGPT struggle to position themselves in the AI ​​era, Vercel, a 10-year-old development tool and website hosting platform, is capitalizing on the explosion of AI-generated apps and agents.

“When I started this company, only tens of millions of people could go viral,” Vercel CEO Guillermo Rauch told the conference audience. HumanX Conference in San Francisco last week. “Now we see that everyone in the world can create an app.”

Explosion in Create the application By non-developers it has been a huge boon to Vercel’s business.

The company’s annual recurring revenue (ARR) increased significantly from 100 million dollars at the beginning of 2024, according to The Information, to a run rate of $340 million by the end of February 2026, according to Forbes.

Given this growth, Rauch was asked on stage about his IPO plans. He pointed out that the company already operates under a public entity system. “Vercel is very much a public operating company,” Rauch said.

As for when the debut will occur, he replied, “There is no perfect or quarterly timeline that I can give. The company is ready and getting more ready for this every day.”

2026 was expected to be a strong year for new listings, but a sharp sell-off in software, fueled by fears of AI disruption, effectively put the IPO process on hold. Aside from SpaceX, Anthropic, and OpenAI, most of the talk of public debuts has largely stopped. Once any of these companies go public, all of which are expected to be big hits, the window may open again.

Meanwhile, most tech CEOs have remained silent about their IPO plans. But Rauch is telegraphing the company’s readiness for the public market, suggesting Vercel is eyeing a listing in the not-so-distant future.

When asked what Wall Street should know about Vercell, Rauch responded: “The total addressable infrastructure market has been growing now, and it simply has no ceiling.”

Vercel is betting that as more apps are created by AI agents rather than humans, the company will become the primary platform to host everything agents develop.

“Agents are very prolific at deploying,” Rauch said, adding that 30% of the applications running on the company’s platform already come from agents.

According to Rauch, dealers will speed up software production by making it easier to create custom solutions rather than purchasing existing software.

“All of these programs…have to go somewhere, and we think it will be Vercel,” he said.

Vercel was last valued at $9.3 billion when it raised a $300 million Series F led by Accel in September. The company competes with Cloudflare and Amazon Web Services in hosting services, and also offers v0, a coding tool for building websites and apps.