TL;DR

Amjad Masad, the Palestinian-born founder of Replit, has been publicly outspoken about the war in Gaza and faced ostracism in Silicon Valley. Meanwhile Replit doubled down on AI-powered coding tools, raised $250 million in September and achieved a $3 billion valuation.

What happened

Amjad Masad, 38, the founder and CEO of Replit, has continued to voice strong pro-Palestinian views since the October 2023 outbreak of war in Gaza, a stance that drew sharp criticism from peers and investors in Silicon Valley. He says party invitations and social connections dried up and that some investors publicly denounced him; one backer declared he would donate any earnings from the investment to the Israel Defense Forces. Masad has not retreated from the positions that prompted the backlash. At the same time, Replit’s product roadmap shifted to incorporate generative AI: in 2024 the company combined its browser-based coding tools with an AI agent that can turn plain-English prompts into pre-coded apps. That repositioning helped Replit secure $250 million in a September funding round led by Prysm with participation from Andreessen Horowitz and Amex Ventures, valuing the company at about $3 billion. Masad, who grew up in Amman and previously worked at Codecademy and Facebook, also notes he once declined a reported $1 billion acquisition offer from GitHub and paused the business in 2019 while caring for his ill mother.

Why it matters

  • Replit’s valuation underscores how quickly AI features can reshape a startup’s market position and investor interest.
  • Founder activism can carry material reputational and fundraising consequences in tech hubs such as Silicon Valley.
  • A concentrated bet on an AI-driven product exposes Replit’s future to the broader health of the AI funding cycle.
  • Masad’s profile highlights questions around representation and political expression among Arab and Palestinian founders in technology.

Key facts

  • Replit raised $250 million in September from investors including Prysm, Andreessen Horowitz, and Amex Ventures.
  • The funding round valued Replit at roughly $3 billion.
  • In 2024 Replit integrated AI into its coding platform to create an agent that converts English prompts into pre-coded applications.
  • Masad says he faced social and investor backlash after publicly criticizing Israel’s actions in Gaza following October 2023.
  • One investor associated with Replit publicly said they would donate any gains from the investment to the Israel Defense Forces.
  • Masad grew up in Amman, Jordan, earned a computer science degree in 2010, and worked at Codecademy and Facebook before founding Replit.
  • Replit participated in Y Combinator in 2018 and later received early investment from Andreessen Horowitz.
  • Masad says he declined a $1 billion acquisition offer from GitHub.
  • The AI coding sector drew about $4.7 billion in U.S. funding in the last year, and competitors mentioned in reporting include Lovable and Base44.

What to watch next

  • Whether Masad’s public political stance affects Replit’s ability to raise future funding — not confirmed in the source.
  • If the broader AI funding cycle cools, whether Replit can sustain its $3 billion valuation — not confirmed in the source.
  • How Replit’s AI-driven coding agent performs commercially against rivals such as Lovable and other AI code-to-product firms — not confirmed in the source.

Quick glossary

  • Replit: A browser-based coding platform that lets users write, collaborate on, and deploy software without installing local development tools.
  • AI agent: A software component that uses artificial intelligence to perform tasks or make decisions, such as translating natural-language prompts into executable code.
  • Y Combinator (YC): An early-stage startup accelerator that provides seed funding, mentorship, and networking to participating companies.
  • Valuation: An estimate of a company’s market worth, often derived from the price investors pay in a funding round.

Reader FAQ

Why did Amjad Masad face backlash in Silicon Valley?
He publicly criticized Israel’s conduct in Gaza after October 2023; peers and some investors reacted negatively and labeled him a ‘terrorist sympathizer’ in the aftermath.

How much is Replit worth and who invested?
Replit raised $250 million in September at an approximate $3 billion valuation with participation from Prysm, Andreessen Horowitz, Amex Ventures and others.

Did Masad ever consider selling Replit?
Masad says he turned down a reported $1 billion acquisition offer from GitHub.

Is Replit profitable or reporting revenue figures?
not confirmed in the source

Source: Photo illustration by The Standard Business He was called a ‘terrorist sympathizer.’ Now his AI company is valued at $3B “I must apologize to — absolutely nobody”: Replit founder…

Sources

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