Building the Generative Web with AI ft Vercel CEO Guillermo Rauch

Vercel CEO Guillermo Rauch argues installable software is dying and every app will be generated on-demand within 3-5 years.

• v0 has 3 million users including Fortune 10 enterprises; Rauch says it prevents ~1,000 LLM-generated security vulnerabilities per day.
• ChatGPT has become one of Vercel’s fastest-growing signup sources, growing exponentially; attendees at AI Engineering SF said they discovered Vercel because ChatGPT told them to use it.
• Vercel’s total user base is doubling year-over-year, a growth rate that took years to achieve pre-AI now happening automatically.
• o3 found a use-after-free vulnerability in the Linux kernel with minimal prompting — Rauch uses this as evidence LLMs will produce secure-by-construction code at scale.
• Rauch’s contrarian thesis: downloadable/installable software loses to generated-on-demand apps within 3-5 years; he personally no longer uses traditional coding tools, only v0.
• Vercel released the v0 model publicly and open-sourced the AI SDK, positioning both as infrastructure for third-party agent builders.
• Rauch predicts AI-native companies will reach unprecedented scale in 3 years while legacy internet companies that fail to adapt collapse.

2025-08-05 · Watch on YouTube