Postgres database startup Supabase Inc. has closed on a $500 million late-stage investment that brings its valuation to a cool $10.5 billion, it revealed today.

The company, which provides ready-to-use back-end tools for developers building websites and artificial intelligence coding applications, said the round was led by GIC, the sovereign wealth fund of Singapore. All of its previous investors, including Accel and Y Combinator, participated.

The round comes just eight months after Supabase closed on its Series E and means it has now raised over $1 billion in total funding, in the latest sign that investors are willing to pour cash into all corners of the AI market.

Supabase is riding on the massive growth in AI-assisted software development, which allows developers and others who don ’ t possess coding skills to build software using simple natural language prompts. The company said it has been a major beneficiary of the growing popularity of apps such as Anthropic PBC ’ s Claude Code, OpenAI Group PBC ’ s Codex and similar tools like Cursor. These tools all require back-end databases of the kind that Supabase provides, and they now make up the bulk of its user base, said co-founder and Chief Executive Paul Copplestone ( pictured, left, alongside co-founder and Chief Technology Officer Ant Wilson ) .

The company ’ s platform is a customized version of the open-source PostgreSQL database, and serves as a place for developers to store data, authenticate user sign-ups and logins and scale their applications. In addition to the basic database, Supabase adds a content delivery network, cybersecurity tools and simplifies many of the standard features. It also has a bunch of tools aimed at AI developers.

For example, the standard Postgres database isn ’ t very good when it comes to storing vector embeddings, which are the mathematical structures used by AI models to store their knowledge. Supabase gets around this with a tool called pgvector, which throws in support for embeddings. Those embeddings are compressed, numerical representations of data such as product descriptions.

Developers can use an application programming interface built into Supabase ’ s platform to turn almost any kind of business data into embeddings. They can then manage those embeddings using a Python client provided by the company. Python has a relatively simple syntax that makes it possible to perform complex tasks using a small amount of code.

Supabase ’ s AI feature set also includes a tool called Edge Functions. It enables developers to create serverless functions using JavaScript, another relatively simple programming language.

Since launching in 2020, Supabase has secured more than 250,000 users globally and grown its staff to more than 350 employees. It has emerged to become a direct rival to much larger databases companies such as the publicly traded MongoDB Inc. and Amazon Web Services Inc., which offers the Aurora database that ’ s based on Postgres.

The company intends to double down on its features for AI developers, and today it announced a preview of a new tool called Multigres, which will help companies building on the Supabase platform to "scale up to the size of OpenAI," or potentially even bigger, Copplestone told CNBC in an interview.

Accel partner Arun Mathew said he was most impressed with Multigres. "I think historically there have been a lot of challenges with scaling a database from a small, tiny application with one developer to some of the largest organizations, companies, applications in the world," he said. But Multigres works flawlessly, he said, adding that "very few products do that."

Mathew added that Supabase ’ s growth rate over the last year has been "phenomenal" compared to other database startups. "We haven ’ t seen a company grow at this pace, certainly in the database layer, ever before," he said.

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