❯ Vercel reaches $600 million in annualized revenue, with about half of new business coming from AI coding agents

Up 148% in a yearAccording to The Information, Vercel is generating $600 million in annualized revenue, up 148% from a year earlier. Annualized revenue projects a year from the current pace and is not realized full-year revenue. The source of growth draws more attention: AI coding agents now account for about half of new business, up from less than 3% at the start of the year.

Hosting sites and apps for developersVercel provides a platform for building and hosting websites and AI applications and is the developer of the Next.js framework and the AI SDK. As relayed by GuruFocus, its paid customers grew 20%, it has moved from subscriptions to usage-based billing, the AI SDK is downloaded about 33 million times a week, and customers include Meta and SpaceX.

Agents as a sales channelHalf of new business coming from coding agents means many new customers arrive when an agent generates an application, not through a sales team. Database company Supabase reports something similar, saying 70% of new databases on its platform are created by agents or AI tools.

A different audience to win overInfrastructure companies used to win developers through documentation, community and reputation, and now also need to be “picked” by agents. Which platform an agent chooses is no longer decided by Vercel’s docs and community alone. Usage-based billing ties Vercel’s revenue directly to the number of applications agents generate.

▪ SIGNALThe customer for developer tools is shifting from people to agents, growth goes to whoever agents call by default, and the target of marketing becomes the model.