AI agents that write software are booming, delivering real business growth to the platforms that host that software, and Vercel is one of them.

The eleven-year-old company offers tools that help developers build and host websites and AI applications, including the AI agents used to automate white-collar work, and it has reached $600 million in annualized revenue, or $50 million per month.

That marks a 148% jump from the same period a year earlier, up from $500 million in annualized revenue in July.

According to a person familiar with the matter, the number of paying customers also grew by a similar margin, roughly 20%.

In a funding round a year ago, Vercel was valued at $9.3 billion. Since then, the company has adjusted its business model, shifting its charging approach mainly to usage-based pricing rather than subscriptions.

It faces a long list of competitors, from software vendors such as Netlify and Cloudflare to large cloud providers like Amazon.

On the track of helping application developers flexibly call various AI models through a single set of APIs, it also competes with OpenRouter, which is about to be acquired by Stripe.

Vercel CEO Guillermo Rauch said at the company's Ship conference in June that new business generated by coding AI agents now accounts for roughly half of all new business at Vercel, compared with less than 3% at the start of the year.

For a long time, Vercel has been known as a platform that helps developers launch websites and applications quickly, sparing them a large amount of tedious technical configuration between finishing code and going live, such as server setup and security certificate applications, while also operating the underlying infrastructure on their behalf.

Because of this, a large number of human developers, and now various coding agents such as Claude Code, Cursor and OpenAI's Codex, default to Vercel. Part of the reason is that many developers learned web development using Next.js, Vercel's open-source framework.

Earlier this year, Vercel completed a strategic pivot, focusing the company on the AI agent track and rebuilding its infrastructure so AI agents can easily deploy and run the software they generate. A person familiar with the matter described it as "a case of the right place at the right time."

Glenn Solomon, a general partner at venture capital firm Notable Capital, which has invested in Vercel, said: "AI agents choose Vercel just like humans do; they are already first-class builders on this platform. The total amount of software produced in the past few years exceeds the sum of all software in human history — after all, AI agents do not need holidays or rest."

The person familiar with the matter said Vercel now has 485,000 paying customers. Enterprise customers include Meta, SpaceXAI, Cursor, OpenAI, weather company The Weather Company and Zapier.

Vercel was founded in San Francisco in November 2015, before ChatGPT. It successfully rode the AI wave to transform its business while maintaining the high gross margins typical of software companies, unlike most coding AI startups, whose gross margins are generally thin.

One product driving Vercel's hosting business is the web development framework Next.js. A person with direct knowledge said that as of August this year, Next.js had accumulated 1.3 billion downloads this year, with 300 million added in July and August alone.

Another free open-source product is Vercel's AI Software Development Kit (AI SDK), which helps developers connect applications to various large AI models. Rauch calls the AI SDK "the Next.js of AI."

According to data from the JavaScript package repository npm, as of October 1, the AI SDK had about 33 million weekly downloads, ranking third globally behind only the SDKs of OpenAI and Anthropic.

Rauch, a longtime advocate of open-source software and the open internet, said in April that Vercel plans to launch an IPO but has not yet set a specific timeline.