Guillermo Rauch: Why Software Development Will Never Be the Same
The MAD Podcast with Matt Turck
Channel
Interviewed Person
Guillermo Rauch
Description
In this episode, Vercel CEO Guillermo Rauch goes deep on how V0, their text-to-app platform, has already generated over 100 million applications and doubled Vercel’s user base in under a year. Guillermo reveals how a tiny SWAT team inside Vercel built V0 from scratch, why “vibe coding” is making software creation accessible to everyone (not just engineers), and how the AI Cloud is automating DevOps, making cloud infrastructure self-healing, and letting companies expose their data to AI agents in just five lines of code. You’ll hear why “every company will have to rethink itself as a token factory,” how Vercel’s Next.js went from a conference joke to powering Walmart, Nike, and Midjourney, and why the next billion app creators might not write a single line of code. Guillermo breaks down the difference between vibe coding and agentic engineering, shares wild stories of users building apps from napkin sketches, and explains how Vercel is infusing “taste” and best practices directly into their AI models. We also dig into the business side: how Vercel’s AI-powered products are driving explosive growth, why retention and margins are strong, and how the company is adapting to a new wave of non-technical users. Plus: the future of MCP servers, the security challenges of agent-to-agent communication, and why prompting and AI literacy are now must-have skills. Vercel Website - https://vercel.com X/Twitter - https://x.com/vercel Guillermo Rauch LinkedIn - https://www.linkedin.com/in/rauchg X/Twitter - https://x.com/rauchg FIRSTMARK Website - https://firstmark.com X/Twitter - https://twitter.com/FirstMarkCap Matt Turck (Managing Director) LinkedIn - https://www.linkedin.com/in/turck/ X/Twitter - https://twitter.com/mattturck LISTEN ON: Spotify - https://open.spotify.com/show/7yLATDSaFvgJG80ACcRJtq Apple - https://podcasts.apple.com/us/podcast/the-mad-podcast-with-matt-turck/id1686238724 00:00 - Intro 02:08 - What Is V0 and Why Did It Take Off So Fast? 04:10 - How Did a Tiny Team Build V0 So Quickly? 07:51 - V0 vs Other AI Coding Tools 10:35 - What is Vibe Coding? 17:05 - Is V0 Just Frontend? Moving Toward Full Stack and Integrations 19:40 - What Skills Make a Great Vibe Coder? 23:35 - Vibe Coding as the GUI for AI: The Future of Interfaces 29:46 - Developer Love = Agent Love 33:41 - Having Taste as Developer 39:10 - MCP Servers: The New Protocol for AI-to-AI Communication 43:11 - Security, Observability, and the Risks of Agentic Web 45:25 - Are Enterprises Ready for the Agentic Future? 49:42 - Closing the Feedback Loop: Customer Service and Product Evolution 56:06 - The Vercel AI Cloud: From Pixels to Tokens 1:10:14 - How Vercel Adapts to the ICP Change? 1:13:47 - Retention, Margins, and the Business of AI Products 1:16:51 - The Secret Behind Vercel Last Year Growth 1:24:15 - The importance of Online Presence 1:30:49 - Everything, Everywhere, All at Once: Being CEO 101 1:34:59 - Guillermo's Advice to Younger Self
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Transcript
in many ways I think MCB will be the new business development but it's going to be at a 100 times the speed it's not going to be people meeting and it's going to be agents meeting we can call it AI transformation every company will have to rethink itself what Jensen Huang calls a token factory the fundamental thing is that companies will be producing intelligence at scale welcome to the Mad Podcast today we have an epic conversation with Guar the CEO of Verscel a legendary engineer and one of the most prolific coders of this generation giammo moved to the US from
his native Argentina when he was 18 years old and sold his first startup to WordPress a few years later he then started Versel a cloud platform to develop and ship fast web apps which has grown to over 6 million users and powers websites like Stripe Adobe Midjourney Nike and OpenAI on top of that Versella has scored a major hit with the launch of Vzero their immensely popular text to code AI builder this is a really fun conversation where we covered tons of ground including the rise of vibe coding
there's a way of building software where you don't pay attention to the code the importance of taste you need taste you need to have a vision of what you want and you need to be able to articulate it versel's brand new AI cloud that they just announced yesterday at their annual Versel ship conference an AI cloud should have agents that automatically produce solutions rather than give you problems the fundamental importance of the MCP protocol think about MCP is like
the HTTP for AIS a protocol that allows AIS to talk to other AIS and what advice he would give himself if he were an 18-year-old developer today my advice would be focus a lot on getting to know everything that's available in the new world please enjoy this fantastic conversation with Germa Raj gma welcome thanks for having me so you're recording this on the big Versel ship annual conference and the big announcement of this week is the AI cloud which we're going to discuss at length uh in a minute but I was hoping
to uh start with Vzero which is a big hit that you have on your hands and it seems like it was an overnight sensation when uh you launched everything that works is an overnight success yes uh so you launched it in the in the fall of of 2024 and you've been on a tear since are there any metrics or any qualitative information uh you can share to help us get a sense for traction yeah it's pretty insane we've passed over 100
million generations of applications for those that don't know Vzero allows you to convert text to application idea to application it speaks to an audience that Versell has typically not spoken to it's basically everybody with a job or even everybody without a job whereas Versel required that you knew engineering skills this requires that you have an idea i think it's the embodiment of what people have been calling vibe coding and to give you an idea of the difference between the two personas every single second there's
seven app generations happening on Vzero vzero has more than doubled the entire user base of Versel and Versell has been around for almost 10 years uh vis has doubled our number of users in less than a year and so what's happening really is that coding is being automated more people can code with the ease that you could type into chat GBT and I think that's creating more software some people call it personal software or
hyper specialized applications but the two things that are driving this is one I call it everybody can cook you and I have an idea we can bring it to life as individuals right like during the weekend maybe with our kids the other thing that's happening is that within companies teams and enterprises people have the same fundamental need they need to prototype their ideas they need to communicate better with designers and marketers and
Video Details
- Duration
- 1:45:48
- Published
- June 26, 2025
- Channel
- The MAD Podcast with Matt Turck
- Language
- ENGLISH
- Views
- 5,350
- Likes
- 144
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