Supabase in talks for $500M round aiming at $10 billion valuation

Supabase is reported to be in talks to raise roughly $500 million in a funding round that, if completed on current terms, would place the company’s valuation at about $10 billion. The Information first reported the discussions and Reuters subsequently carried the report based on those sources.

Sources close to the matter said Singapore’s sovereign investor GIC (Government of Singapore Investment Corporation) has been in discussions to lead the round, though the size and final terms remain subject to negotiation. Supabase has raised multiple rounds over the past year, including a reported $100 million Series E that placed its valuation near $5 billion, providing context for the rapid re-rating under discussion.

Market participants link the interest in Supabase to the rise of “vibe coding” — AI-driven, interactive code generation workflows — which has increased demand for reliable backend and database infrastructure. Supabase’s Postgres-based, open-source platform is widely used by developers building AI-assisted applications, positioning it as a strategic infrastructure play for investors focused on the AI application stack. The current reports emphasize that the negotiations are ongoing and no closing has been publicly confirmed by the company.

Broader investor behaviour in 2025–2026 shows more capital flowing toward AI infrastructure and developer tooling, lifting late-stage valuations for companies perceived as essential to the AI stack. That dynamic has supported rapid step-ups in value for certain private companies, while also raising questions about multiple compression risk, regulatory scrutiny and the durability of revenue growth rates when markets recalibrate.

Analysts say a completed $500 million round led by a large sovereign or institutional investor would give Supabase additional runway to expand enterprise offerings and invest in security and compliance, but they caution that until a definitive deal is announced the market should treat these reports as indicative rather than conclusive. Security and operational risks associated with faster adoption of AI-generated code remain a watch item for investors and customers alike.