San Francisco-based cloud platform provider Vercel is raising several hundred million dollars in new funding, with the Vercel valuation reportedly around $9 billion, according to people familiar with the matter. The round is being led by venture capital firm Accel, with participation from existing investors including IVP, 8VC, Bedrock, Geodesic Capital, and GV.
Founded and led by Guillermo Rauch, Vercel builds cloud tools for web and AI application development. The company has previously raised more than $500 million, and its last reported valuation in 2024 stood at around $3 billion, marking a sharp increase in just over a year.
Premium Valuations in AI-Driven Development
Vercel valuation underscores investor appetite for companies positioned at the intersection of cloud infrastructure and artificial intelligence. With an estimated $200 million in annual recurring revenue, the $9 billion figure translates to a 45x revenue multiple—well above traditional software firms but in line with other high-growth AI businesses.
Recent industry data shows AI-focused companies trade at a median 29.7x revenue multiple, with some specialized firms commanding valuations above 44x. Vercel’s placement within this premium category highlights both its rapid revenue growth and the confidence investors have in AI-enabled development platforms.
Vercel’s revenue has doubled in just over a year, reflecting accelerating demand for cloud solutions that seamlessly integrate AI into developer workflows. As enterprises adopt AI-first strategies, platforms that merge traditional web development tools with AI-enhanced features are gaining significant traction.
Web Development Shifts to AI-First Workflows
The funding comes at a time when the web development landscape is undergoing a fundamental transformation. Increasingly, businesses are adopting AI-first approaches where websites and applications are built using a combination of human coding and AI-generated elements.
Industry reports show that by mid-2025, 2.5% of new websites were created entirely with AI tools, while 62% of businesses had invested in AI development platforms. This represents a significant shift in workflows, moving AI from a supporting feature to a core driver of software creation.
Vercel sits at the center of this transition, providing developers with the infrastructure to build, test, and deploy modern applications while incorporating AI capabilities natively. Its latest fundin round, which places the Vercel valuation at approximately $9 billion, not only reinforces its role in this ecosystem but also signals growing investor belief that AI-enabled developer platforms will define the next era of software development.
Market Outlook
The Vercel valuation has tripled just over a year, Vercel is now one of the most highly valued cloud startups in the United States. The company’s strong momentum highlights a broader trend in which infrastructure providers that integrate AI into everyday developer workflows are capturing significant market share.
As AI adoption in web development accelerates, Vercel’s positioning suggests it could become a leading player in the AI-enhanced developer tools space, bridging the gap between traditional cloud infrastructure and the new wave of AI-driven innovation.
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