Replit raises USD $400m, hits USD $9bn AI valuation

Replit has raised USD $400 million in a funding round that values the AI coding company at USD $9 billion, as it pushes into new markets and expands its commercial team.

Georgian led the round, with participation from Andreessen Horowitz, Coatue and 1789 Capital. Celebrity investors Shaquille O'Neal and Jared Leto also took part, alongside sovereign wealth funds including Qatar Investment Authority.

The valuation is up sharply from USD $3 billion six months ago. Replit did not disclose revenue, but said it is on track to reach annual recurring revenue of USD $1 billion by the end of the year.

Expansion plans

Replit expects to use most of the new capital for international expansion, focusing on Asia and the Middle East. It also plans to add headcount in go-to-market roles.

Replit is based in San Francisco and led by Chief Executive Amjad Masad, who founded the company with his wife, Haya Masad, Replit's Head of Design. The business began as a browser-based code editor and has shifted toward AI-driven software creation tools.

The funding comes as Replit introduces a new AI coding agent, Agent 4. The product is designed to change how users specify what software should do, using an interface centred on a shared canvas rather than a conventional code editor.

Agent interface

Replit describes Agent 4 as a tool for creating and modifying app designs on a digital canvas. Users can adjust mock-ups, sketch features and collaborate in real time.

Agent 4 also offers guided starting points that prompt users to choose what they want to build, including spreadsheets, data visualisations and games. Replit says the approach enables non-technical staff to build apps without working directly in code.

The product direction builds on what is widely known as "vibe coding", a term for software development that relies more on natural-language prompts and iterative interaction with an AI model than on manual programming.

Paul Graham, a Replit investor and Co-founder of Y Combinator, has tracked the company's shift toward agentic coding. He first saw an early version of a Replit coding agent at Masad's home office near Palo Alto.

"He keeps taking me around the back of his house and showing me the future," said Graham.

Competitive pressure

Replit operates in a fast-changing market where large AI labs and specialist startups are competing for developers and business users. Anthropic's Claude Code has emerged as a leading AI-assisted coding product and has expanded rapidly in recent months. OpenAI's Codex, Cursor, Cognition and Lovable are also competing for adoption.

Replit is targeting users who want to prototype and deploy internal tools without specialist engineering skills. That focus has helped it gain usage inside larger organisations, according to customer accounts cited by the company.

Zillow, Databricks, PayPal and Adobe are among the companies using Replit for internal applications. Zillow has around 600 Replit seats, and employees created more than 7,000 apps over the past year, according to the company.

"You kind of have to understand what's going on underneath the hood to make use of," said Lloyd Frink, Zillow's Co-founder and President.

"The majority of employees at Databricks actually aren't programmers that are extremely technical. So Replit is perfect for that whole segment," said Ali Ghodsi, Databricks' Chief Executive.

Talkdesk, an AI customer service company, has used Replit across its sales and HR teams, including to build an internal application to test hiring capacity. "The process to build the app would have normally taken about two weeks, but instead took two days with Replit," said Shauna Geraghty, Talkdesk's SVP and Head of Global Talent.

Company background

Masad grew up in Amman, Jordan, and moved to the US in 2012. He worked at Codecademy and later at Facebook before founding Replit.

Replit's trajectory has included a major restructuring ahead of its move into agent-based coding products. Masad has described a willingness to abandon earlier work and restart as the company changed its focus.

"We can't cure cancer. Replit is about making everyone a software engineer...I just know our limits," said Masad.