Replit Hits $3bn Valuation With $250m Raise as AI Coding Race Intensifies

Replit, the fast-growing collaborative coding startup, has closed a $250 million funding round at a $3 billion valuation, marking one of the most notable financings in the developer tools and AI coding space this year.

The new funding was led by Prysm Capital, with participation from Amex Ventures and Google’s AI Futures Fund. Existing backers — including Y Combinator, David Sacks’ Craft Ventures, Andreessen Horowitz, Coatue, and Paul Graham — also contributed to the round.

With this raise, Replit has now brought in about $478 million in total funding, according to PitchBook estimates.

A Rare Gap Between Funding Rounds

Unlike many high-growth AI startups that turn to venture capital every few months, Replit has paced itself. Its last raise came in 2023, when it secured $100 million at a $1.16 billion post-money valuation. The new $3 billion valuation means its worth has nearly tripled in just over a year.

The decision to raise now comes amid surging demand for AI-assisted coding platforms.

Explosive Revenue Growth

Founded in 2016 by programmers Amjad Masad and Faris Masad, along with designer Haya Odeh, Replit has positioned itself as a go-to platform for developers experimenting with AI-assisted tools.

The company says its annualized revenue has skyrocketed from $2.8 million to $150 million in less than a year. By June, Replit had already reached $100 million ARR, CEO Amjad Masad tweeted at the time — underscoring its rapid monetization curve as AI coding gains mainstream adoption.

Big Tech Ties: Google and Microsoft in the Mix

Google’s involvement in the latest round is no surprise. Replit has long been a close partner with Google Cloud, and many “vibe-coded” apps built on the platform are hosted there.

Yet Replit’s rise has forced competitors to adjust. In July, Microsoft began offering Replit as an option on its Azure cloud platform, signaling the company’s growing importance in the broader developer ecosystem.

The dual embrace by Google and Microsoft highlights how central Replit has become in the race to integrate AI-powered coding into mainstream developer workflows.

Replit vs. Copilot and Claude Code

Replit’s trajectory differs notably from rivals in the AI coding boom. GitHub Copilot, owned by Microsoft, has leaned on its deep integration with GitHub and Visual Studio Code to win over professional developers. Its adoption is massive, but its growth has been tied to Microsoft’s bundling strategy across enterprise software.

Anthropic’s Claude Code, launched earlier this year, has taken another path by positioning itself as a safe and aligned AI assistant for coding, with uptake driven by companies that prioritize governance and AI safety in enterprise environments.

By contrast, Replit has married accessibility with scale. The platform began as a tool for hobbyists and students but has quickly grown into an enterprise-capable service, bridging the cultural gap between “vibe-coding” communities and serious professional development. Its rapid rise in ARR from $2.8 million to $150 million in under a year demonstrates a monetization curve few in the sector have matched.

This positioning gives Replit a dual advantage: cultural relevance among younger coders experimenting with AI and increasing credibility with larger organizations adopting it at scale.

Replit’s latest valuation places it in the same league as some of the most closely watched AI developer startups, though with a unique growth model. Where foundation model labs like OpenAI or Anthropic compete on building cutting-edge models, Replit has turned those models into practical tools that everyday users and enterprises can deploy instantly.

The $250 million injection also highlights the next wave of venture focus: not just the AI models themselves, but the platforms enabling millions to build on top of them.