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Vercel

Vercel Inc.
FormerlyZEIT (2015–2020)
TypePrivate
Industry
Founded2015; 11 years ago (2015)
FounderGuillermo Rauch
Headquarters
San Francisco, California
,
U.S.
Area served
Worldwide
Key peopleGuillermo Rauch (CEO)
Number of employees
550 (2025)[1]
Websitevercel.com

Vercel Inc. is an American cloud application company. The company created and maintains the Next.js web development framework.[2]

Vercel provides developer tools, frameworks, and cloud infrastructure to build and maintain websites.[3] It is the maker of v0, an AI tool for developing websites,[4] and AI SDK. [5] In September 2025, Vercel raised $300 million in a Series F funding round co-led by Accel and GIC, valuing the company at $9.3 billion.[6] The company maintains a free and open-source library for building AI-generated products.[7] According to W3Techs, Vercel is used as hosting provider by 1.9% of all websites.[8]

History

[edit]

Vercel was founded by Guillermo Rauch in 2015 as ZEIT.[9][10] Rauch had previously created the realtime event-driven communication library Socket.IO[11] and Next.js, the open source framework that Vercel optimized for their platform.[2] ZEIT was rebranded to Vercel in April 2020, although it retained the company's triangular logo.[9][12]

In June 2021, Vercel raised $102 million in a Series C funding round.[13] In 2023, Vercel released an AI web development tool called v0 that creates web applications with natural language prompts;[4] it won a 2025 Webby Award for developer tools.[14] In 2023, Vercel released a software development kit called AI SDK[15] designed to allow developers to build conversational streaming interfaces in JavaScript and TypeScript.[16] In May 2024, Vercel raised $250 million in a funding round which valued the company at $3.25 billion.[4] Later, in September 2025, the company raised a $300 million Series F, receiving a valuation of $9.3 billion.[17]

In March 2026, Vercel appointed Mitchell Hashimoto, co-founder of HashiCorp and creator of Terraform, Vagrant, and Ghostty, a performant terminal emulator, to its board of directors.[18]

2026 breach

[edit]

On April 19, 2026, Vercel disclosed a security breach in which certain internal systems were accessed by unauthorized actors. According to the company, the breach originated from the third-party AI tool Context.ai being compromised,[19][20] which, according to cybersecurity firm Hudson Rock, originated from Lumma Stealer malware infecting an employee's computer after they tried downloading Roblox cheat scripts.[21] The attacker breached a Vercel employee's Google Workspace account, accessing "some Vercel environments and environment variables that were not marked as 'sensitive'". A threat actor claiming to be part of ShinyHunters claimed responsibility and offered stolen data for sale at $2 million on BreachForums, though the post was later deleted and the group reportedly denied involvement.[22][23]

Acquisitions

[edit]

Vercel has acquired a number of other companies:

  • in December 2021, Vercel acquired Turborepo.[24]
  • in October 2022, Vercel acquired Splitbee.[25]
  • in January 2025, Vercel acquired Tremor.[26]
  • in July 2025, Vercel acquired NuxtLabs, the creator of the popular web framework Nuxt.[27][28]
  • in July 2026, Vercel acquired Better Auth.[29]

Architecture

[edit]

Vercel's architecture is built around composable architecture, and deployments are handled through Git repositories, the Vercel CLI, or the Vercel REST API. Vercel is a member of the MACH Alliance.

Deployments through Vercel are handled through Git repositories, with support for GitHub, GitLab, and Bitbucket repositories.[b 1] Deployments are, by default, automatically given a subdomain under the vercel.app domain,[30] although Vercel offers support for custom domains for deployments.[b 1]

Vercel's infrastructure uses Amazon Web Services.

In 2025, Vercel introduced a web application infrastructure model named "Fluid" that enables an instance in a local region to handle multiple requests concurrently, similar to a traditional server, while also maintaining the elasticity of serverless systems.[31]

Controversy and boycott

[edit]

In September 2025, Vercel's CEO, Guillermo Rauch, posted a selfie on X that he took with the Israeli prime minister, Benjamin Netanyahu, at a private tech meeting in New York, where they discussed artificial intelligence and its application in Israel's economy and defense.[32][33] With the ongoing genocide in Gaza and the ICC arrest warrants for Israeli leaders, the widespread backlash against Vercel led to the boycott of Vercel.[34][35]

Many developers and users deleted their Vercel accounts and switched to alternatives.[34][33] Tech for Palestine endorses the Vercel boycott and supports the migration to Netlify.[36] Amjad Masad offered companies help and discounts when switching to Replit.[37]

References

[edit]

Bibliography

[edit]
  1. 1 2 So, Preston (September 9, 2021). Gatsby: The Definitive Guide. O'Reilly Media. p. 367. ISBN 9781492087489.

Citations

[edit]
  1. Garfinkle, Allie (January 25, 2025). "For startups, remote work versus return-to-office is a balance—and an experiment". Fortune. Retrieved November 8, 2025.
  2. 1 2 MacManus, Richard (July 20, 2020). "How Vercel Frees Frontend Developers from Backend Burden". The New Stack. Archived from the original on July 28, 2026. Retrieved April 15, 2025.
  3. Lawson, Lorraine (February 5, 2025). "Vercel Rolls Out More Cost-Effective Infrastructure Model". The New Stack. Retrieved April 14, 2025.
  4. 1 2 3 Tong, Anna (May 16, 2024). "Exclusive: Vercel completes $250 mln Series E round at $3.25 bln valuation". Reuters. Retrieved April 15, 2025.
  5. "Vercel Introduces SDK for Building AI Apps with React and Svelte". CMS Critic. June 19, 2023. Archived from the original on May 15, 2026. Retrieved April 15, 2025.
  6. "Vercel Closes Series F at $9.3B Valuation to Scale the AI Cloud". Yahoo Finance. September 30, 2025. Archived from the original on October 6, 2025. Retrieved May 19, 2026.
  7. MacManus, Richard (August 31, 2023). "Vercel's Next Big Thing: AI SDK and Accelerator for Devs". The New Stack. Archived from the original on September 4, 2025. Retrieved April 15, 2025.
  8. "Usage statistics of Vercel as web hosting provider". w3techs.com. Retrieved August 26, 2026.
  9. 1 2 Pimentel, Benjamin (April 21, 2022). "The 29-year-old founder of Vercel used this pitch deck to raise $21 million from investors like Accel and GitHub's CEO to build faster websites". Business Insider. Archived from the original on April 21, 2020. Retrieved October 1, 2022.
  10. Carey, Scott (February 21, 2022). "Vercel, Netlify, and the new era of serverless PaaS". InfoWorld. Archived from the original on May 15, 2024. Retrieved October 1, 2022.
  11. Krill, Paul (June 2, 2014). "Socket.IO JavaScript framework ready for real-time apps". InfoWorld. Archived from the original on September 22, 2019. Retrieved October 2, 2022. Cite error: A list-defined reference with the name "InfoWorldSocketIO" has been invoked, but is not defined in the <references> tag (see the help page).
  12. Anderson, Tim (April 22, 2020). "News sure to ex-Zeit: Next.js company reborn as Vercel". The Register. Archived from the original on August 15, 2020. Retrieved October 26, 2022.
  13. Lardinois, Frederic (June 23, 2021). "Vercel raises $102M Series C for its front-end development platform". TechCrunch. Archived from the original on May 28, 2025. Retrieved October 1, 2022.
  14. "Webby Winner, v0 from Vercel". WebbyAwards.com. Archived from the original on January 17, 2026. Retrieved May 10, 2025.
  15. "Vercel Introduces SDK for Building AI Apps with React and Svelte". CMS Critic. June 19, 2023. Archived from the original on May 15, 2026. Retrieved April 15, 2025.
  16. MacManus, Richard (August 31, 2023). "Vercel's Next Big Thing: AI SDK and Accelerator for Devs". The New Stack. Archived from the original on September 4, 2025. Retrieved April 15, 2025.
  17. "AI coding startup Vercel raises $300 million, valued at $9.3 billion". Reuters. September 30, 2025. Retrieved June 12, 2026.
  18. "Vercel Appoints Mitchell Hashimoto, Co-Founder of HashiCorp and Creator of Terraform, to Board of Directors". Morningstar. March 18, 2026. Retrieved May 19, 2026.
  19. "Vercel April 2026 security incident". vercel.com. Archived from the original on September 5, 2026. Retrieved April 20, 2026.
  20. "Vercel Breach Tied to Context AI Hack Exposes Limited Customer Credentials". The Hacker News. Archived from the original on September 4, 2026. Retrieved April 20, 2026.
  21. James, Luke (April 20, 2026). "AI cloud company Vercel breached after employee grants AI tool unrestricted access to Google Workspace — hacker seeking $2 million for stolen data". Tom's Hardware. Archived from the original on June 4, 2026. Retrieved April 24, 2026.
  22. O'Brien, Terrence (April 19, 2026). "Cloud development platform Vercel was hacked". The Verge. Archived from the original on June 6, 2026. Retrieved June 12, 2026.
  23. Kovacs, Eduard (April 20, 2026). "Next.js Creator Vercel Hacked". SecurityWeek. Archived from the original on June 16, 2026. Retrieved April 20, 2026.
  24. Lardinois, Frederic (December 9, 2021). "Vercel acquires Turborepo". TechCrunch. Archived from the original on June 6, 2026. Retrieved October 1, 2022.
  25. Dee, Katie (October 25, 2022). "Vercel announces Next.js 13 along with the acquisition of Splitbee". SD Times. Archived from the original on August 13, 2025. Retrieved October 26, 2022.
  26. Occhino, Tom (January 22, 2025). "Vercel acquires Tremor to invest in open source React components". Vercel. Archived from the original on March 19, 2025. Retrieved March 19, 2025.
  27. Chopin, Sébastien (July 8, 2025). "NuxtLabs is joining Vercel". NuxtLabs. Archived from the original on August 25, 2026. Retrieved July 9, 2025.
  28. "NuxtLabs joins Vercel". Vercel. July 8, 2025. Archived from the original on June 17, 2026. Retrieved July 9, 2025.
  29. "Better Auth is joining Vercel". Better Auth. September 23, 2024. Archived from the original on July 29, 2026. Retrieved July 29, 2026.
  30. Tyson, Matthew (April 21, 2022). "Go serverless with Vercel, SvelteKit, and MongoDB". InfoWorld. Archived from the original on December 7, 2023. Retrieved October 2, 2022.
  31. Lawson, Lorraine (February 5, 2025). "Vercel Rolls Out More Cost-Effective Infrastructure Model". The New Stack. Retrieved April 14, 2025.
  32. "Netanyahu holds quiet AI talks with U.S. tech executives in New York". ctech. September 30, 2025. Archived from the original on August 27, 2026. Retrieved October 1, 2025.
  33. 1 2 Lyon, Jacob (September 30, 2025). "Vercel faces user exodus after CEO picture with Benjamin Netanyahu". Protos. Archived from the original on July 15, 2026. Retrieved October 12, 2025.
  34. 1 2 "Developers drop Vercel, call for boycott after CEO posts selfie with Netanyahu". Middle East Eye. Archived from the original on August 27, 2026. Retrieved August 29, 2026.
  35. "Vercel faces boycott after founder poses with Netanyahu".
  36. "Vercel's Alignment with Genocide". Tech for Palestine. Archived from the original on August 30, 2026. Retrieved August 30, 2026.
  37. "Developers drop Vercel, call for boycott after CEO posts selfie with Netanyahu". Middle East Eye. Retrieved August 30, 2026.

37°47′52″N 122°24′19″W / 37.7977°N 122.4053°W / 37.7977; -122.4053