Supabase Raises $100M at $5B Valuation, Proving Databases Are the New Rockstars of AI

Supabase, the open source darling of backend development, just secured a cool $100 million Series E at a $5 billion valuation. That’s right: the company best known for making it slightly less painful to wrangle Postgres has now raised more money than your average LLM startup promising to “redefine the future of consciousness.”

And unlike some of those vaporware darlings, Supabase actually has a product. Over 4 million developers use it, from caffeine-addled solo hackers to PwC consultants who still believe Excel is a programming language.

So yes—congratulations, Supabase. You’ve officially graduated from “scrappy Firebase alternative” to “databases are sexy again.”

Postgres: From Dad Tech to AI Backend of Choice

Remember when Postgres was that boring database your college sysadmin swore by, while everyone else was swooning over MongoDB? Fast forward to 2025, and Postgres has become the star of AI-driven development.

Supabase is at the center of this renaissance. It’s the tool developers reach for when they need a backend that updates itself with commands from AI copilots like Cursor and Claude Code. Forget lovingly hand-crafted schemas—just tell the AI what you want, and let Supabase do the grunt work.

It’s basically “move fast and break things,” but with slightly more SQL and slightly fewer lawsuits.

$5 Billion: Because Valuations are Made Up Anyway

This round was co-led by Accel and Peak XV, with participation from Figma Ventures and other believers. It comes just four months after Supabase’s Series D, proving that the only thing faster than their query speeds is their ability to raise money.

If you’re keeping score at home, that’s over $500 million in total funding, which means Supabase is either about to build the most bulletproof enterprise backend of all time—or a very expensive collection of branded hoodies.

Accel’s Arun Mathew called Supabase “the defining database for the next generation of software.” Peak XV’s Shailendra Singh gushed about “powering the AI supercycle.” Translation: Postgres tables are the new GPUs.

Community Equity: Because Retweets Don’t Pay the Bills

In a rare twist, Supabase says it’s reserving part of this round for community members to co-invest. That’s right—open source contributors might finally get something other than a “thanks” sticker and unpaid Slack notifications at 3 a.m.

CEO Paul Copplestone framed it as giving “the opportunity to co-invest in what we’re building.” For developers, it’s a chance to transform unpaid bug fixes into slightly illiquid private equity. Still, it beats equity in Hacker News karma.

Customers: From YC Startups to McDonald’s

Supabase now powers more than 100,000 customers, including over 50% of the latest Y Combinator batch. That means half of all “Uber for X” clones are quietly being held together by Supabase tables and prayers.

Enterprises like PwC, McDonald’s, and Github Next also made the cut. Yes, the same company that perfected the art of the Filet-O-Fish is now using Supabase to track data, proving that AI-driven backends go with fries.

Multigres: Because One Database is Never Enough

The big new initiative is Multigres, an enterprise-scale version designed for massive, data-intensive workloads. To make that happen, Supabase hired Sugu Sougoumarane, co-creator of Vitess. That’s like getting the Beatles back together, if the Beatles had spent their lives indexing rows instead of writing “Hey Jude.”

Add in Postgres core contributors, the NGINX co-founder, and assorted YC founders, and Supabase now has more database royalty than an AWS re:Invent keynote.

The Investor Chorus: Singing in Perfect Valuation Harmony

Investors couldn’t stop waxing poetic in the press release.

• Accel: Supabase is “redefining what it means to build applications with AI.”
• Peak XV: Supabase has “a developer-first mindset powering the AI supercycle.”
• Coatue’s Caryn Marooney: Developers can “build in a weekend and scale to millions.”

All of which are investor-speak for: “We missed Snowflake, we’re not missing this one.”

Why This Actually Matters

Snark aside, this is a big deal. The future of software is increasingly tied to AI copilots. Developers want a backend that doesn’t require them to manually provision, configure, and cry into their YAML files. Supabase fills that gap—easy enough for a hackathon, robust enough for enterprises.

And unlike many “AI infrastructure” plays that rely on speculative science projects, Supabase is simply building on a proven foundation: Postgres. The twist is wrapping it in enough modern tooling, AI integration, and open source cred to feel like the future rather than a throwback.

Final Word: Congrats, Supabase (Really)

So here’s to Supabase: the company that made databases cool enough to raise $100 million in four months and $500 million overall, all while convincing investors that Postgres tables are the new rocket ships.

Whether Multigres becomes the backbone of the AI era or just a really expensive demo at PostgresConf 2026, one thing’s certain: Supabase has gone from “Firebase for hipsters” to a $5 billion juggernaut that no one can ignore.

And honestly? Congrats. You earned it.