Prediction Not checkable as stated
Rauch: Agentic engineering will be limited to professional developers until AGI
“Agentic engineering, I think for the foreseeable future, until we really, you know, reach SSI, or Safe Super Intelligence, or whatever you want to call it, or AGI, it'll still, it's going to be a more reduced number of software professionals.”
Opinion
Rauch: The total addressable market for v0 is everyone with a computer
“When I think about the coding IDEs, You still have to be a coder, meaning you know how to download an ID, you have to, you know how to set up, you know, the dev server, the tooling, the SDKs, the libraries, whereas a product like vZero, the TAM is everyone wit…”
Insight
Rauch: Dev tools must be designed for both humans and AI agents
“LLMs.txt or raw markdown is better for agents. So if you're building developers still today, you have to have that duality in your head. You need to think, okay, How do I make my content, my errors, my developer tools great for agents?”
Prediction Not checkable as stated
Rauch predicts a fully generative internet with fluid interfaces within 10 years
“So I think what's going to happen over the next 10 years is that people are going to start creating cross pollinations between products and integrations between products and novel interfaces to products that weren't, I mean, they were possible before, but just…”
Prediction Not checkable as stated
Rauch: MCP will replace human business development with agent-to-agent meetings
“You know, in many ways, I think MCB will be the new business development, but it's going to be at a hundred times the speed. It's not going to be people meeting and it's going to be agents meeting.”
Prediction Not checkable as stated
Rauch: AI cloud will be self-healing and autonomous with humans in loop
“We believe that the AI cloud will be self healing as well as completely autonomous from an infrastructure point of view. And we believe that agents and humans will collaborate.”
Assertion Not checkable as stated
Rauch: Vercel's v0 has positive and improving gross margins
“Yeah, BZero has positive gross margins. It's a healthy business. The margins are improving, the business is improving”
Prediction Not checkable as stated
Rauch: Manual code writing will become increasingly irrelevant over time
“Writing the code is going to become less and less relevant over the years”
Prediction Not checkable as stated
Rauch: Every company must become an AI-native interface or token factory
“Every company will have to rethink itself as what Jensen Juan calls a token factory, or what I could call, you know, a AI native interface, or you could call it an agent. It doesn't matter what you call it. The fundamental thing is that companies will be produ…”
Insight
Rauch: Taste, vision, and clear articulation are essential for AI creators
“You need taste. You need to have a vision of what you want, and you need to be able to articulate it. You know, those are like the fundamental, like literacy of a person. A successful individual will be able to discern what they want and what they don't want.”
Assertion Partly supported
Rauch: Anthropic's Claude Code uses Vercel to deploy applications
“But nowadays when you ask Claude Code Anthropics agent to deploy, They use for sale because we had, you could argue accidentally created the perfect tool for an agent to deploy.”
Assertion Supported
Rauch: Multiple security incidents have already occurred with MCP servers
“In fact, there's already been quite a few incidents with MCP servers where depending on what chat message was sent, the MCP tool that was called was made to disbehave.”
Prediction Not checkable as stated
Rauch: Agentic commerce will feature AI agents navigating alongside web users
“And so I think there's going to be new primitives like that in the world of agentic commerce, where the agent jumps alongside you in your navigation journey.”
Disclosure
Rauch: Vercel Fluid Compute only bills active CPU cycles during LLM wait times
“If you're waiting for 15 minutes for OpenAI to respond, and you do a tiny bit of compute, maybe to like transform it into HTML or transform it into an MCP response or, you know, call other systems. We're only going to charge you for the actual CPU cycles that …”
Insight
Rauch: AI product builders must design from current model capabilities forward
“And there's another emergent principle of you have to design from the model forward.”
Assertion Supported
Rauch: Vercel AI SDK is second largest AI module behind OpenAI
“It's the second largest AI module behind OpenAI.”
Prediction Not checkable as stated
Rauch predicts a huge wave of mobile apps controlling remote computers via AI
“Because now you can control computers remotely with agents. And again, we're just at the beginning of that. I think there's very few people that have actually done this. There's a company called Manos AI that has like this, like on your phone, you are controll…”
Opinion
Rauch: ChatGPT's UI simplicity gives it a fundamental advantage over Google
“If you look at ChatGPT, one fundamental advantage they have over Google is the simplicity of the UI.”
Insight
Rauch: Prompting AI is the best proxy for measuring candidate curiosity
“I think prompting is the biggest proxy for how would I measure someone's curiosity.”
Assertion Not checkable as stated
Rauch: Vercel's v0 has generated over 100 million applications
“We've passed over a hundred million generations of applications.”
Assertion Not checkable as stated
Rauch: v0 doubled Vercel's entire user base in under a year
“VZero has more than doubled the entire user base of Vercel, and Vercel has been around for almost 10 years. VZero has doubled our number of users in less than a year.”
Assertion Supported
Rauch: Next.js has 1.4 million monthly active developers as top React framework
“Next.js today is the largest web framework in the React ecosystem, 1.4 million monthly active developers.”
Prediction Not checkable as stated
Rauch: Every company, task, and role will need complementary AI agents
“So as the market realizes that every company, every task, every role, We'll need these complementary agents.”
Insight
Rauch: AI agents, not human users, will directly wield software tools
“So we're entering a world where it used to be that the tools get drawn in front of your face and knew how to wield them. In this new world, the tools are given to the agent and the agent wills them and decides when to use which.”
Guillermo Rauch