Vercel
| Company type | Private |
|---|---|
| Industry | Cloud computing, Software development |
| Founded | 2015 |
| Founder | Guillermo Rauch |
| Headquarters | United States |
Key people | Guillermo Rauch (CEO) |
| Products | Next.js framework, v0 AI-driven web development platform, AI SDK, developer tools, cloud infrastructure solutions |
| Website | https://vercel.com |
Vercel Inc. is a U.S.-based cloud application enterprise recognized for its development and stewardship of the Next.js framework for web development. The company provides a suite of developer tools, frameworks, and cloud infrastructure solutions designed to facilitate the creation and management of websites. Among its offerings are the AI-driven web development platform v0 and an AI software development kit (SDK), both aimed at enabling developers to build applications powered by artificial intelligence.
History
Established in 2015 by Guillermo Rauch under the name ZEIT, the firm underwent a rebranding to Vercel in April 2020, maintaining its initial logo throughout the transition. Prior to founding the company, Rauch was responsible for creating the real-time event-based communication library Socket.IO as well as the open-source Next.js framework, which Vercel has since optimized specifically for its platform environment.
In June 2021, Vercel completed a Series C funding round, raising $102 million. The year 2023 marked the launch of v0, an AI-driven tool that generates web applications from natural language inputs, which subsequently earned a 2025 Webby Award recognizing excellence in developer tools. That same year, Vercel introduced its AI SDK to support conversational streaming interfaces developed with JavaScript and TypeScript. In May 2024, the company secured $250 million through Series E funding, placing its valuation at $3.25 billion.
In September 2025, a meeting between CEO Guillermo Rauch and Israeli Prime Minister Benjamin Netanyahu amid the Gaza conflict attracted public scrutiny. This event prompted some users to transfer their applications away from Vercel and led to at least one employee stepping down.
Acquisitions
On December 9, 2021, Vercel expanded its portfolio by acquiring Turborepo.
On October 25, 2022, the company further grew through the acquisition of Splitbee.
On January 22, 2025, Vercel purchased Tremor to broaden its commitment to open-source React component development.
On July 8, 2025, Vercel acquired NuxtLabs, thereby strengthening its position within the Vue.js framework community.
Architecture
The foundation of Vercel's system is a composable architecture, with deployments managed via Git repositories, the Vercel command-line interface (CLI), or through its REST API. It integrates seamlessly with platforms like GitHub, GitLab, and Bitbucket, providing automatic deployment subdomains under vercel.app as well as support for custom domains. The infrastructure underpinning Vercel is hosted on Amazon Web Services.
In 2025, Vercel unveiled Fluid, an innovative web application infrastructure approach that enables instances located in regional data centers to manage multiple simultaneous requests akin to traditional server environments while preserving the scalability benefits of serverless computing. This advancement enhances both cost-effectiveness and performance for scalable web applications.