I recently came across some news about Vercel. The CEO of the front-end development platform, Guillermo Rauch, apparently revealed plans for an IPO at a conference in San Francisco.

The numbers are quite intriguing. In early 2024, the annual revenue was $100 million, but by the end of February, it had grown to $340 million. That's more than a threefold increase in just two years. Such rapid growth is, I believe, a clear sign that they are successfully riding the wave of AI.

Rauch pointed out that about 30% of the applications deployed on Vercel's platform are generated by AI agents. We are entering an era where anyone can create software with AI. As a result, a vast number of applications are being created, and there is a growing need for places to host all of them. That’s where Vercel sees its opportunity.

Their competitors include major players like Cloudflare and AWS. However, Vercel is building a platform optimized for the AI era. They also have a web development tool for AI called "v0." In their funding round last September, they raised $300 million, valuing the company at $9.3 billion.

The current IPO market in the tech industry is almost frozen. Except for SpaceX and Anthropic, most companies are keeping quiet about plans to go public. In this context, Vercel’s CEO actively signaling their intentions might be a sign of confidence. He stated, “The infrastructure market continues to expand, and there is no upper limit.” It might really be true that infrastructure demand in the AI era will keep growing.