Notion’s AI bundling drives revenue to $600 million

Notion reached $600 million in annual recurring revenue in early 2026. This figure grew from $500 million in September 2025 and $240 million in 2023. Roughly 50% of this new revenue comes from AI-driven upgrades. In 2025, Notion stopped selling AI as a standalone $8 or $10 monthly add-on. Instead, the company bundled full AI access into the $20 per user Business tier. This tier includes Notion AI, Notion Agent, SAML SSO, and private teamspaces. It utilizes models like GPT-4 and Claude 3.7. This change forces teams to upgrade from the $10 Plus tier to access AI features.

Notion captures revenue through tiered seats. The $10 jump from Plus to Business unlocks AI access. This pricing structure pushes growing teams toward the $20 tier. Most users start on the free version. This massive free base feeds the paid funnel.

User scale and competition

Notion maintains over 100 million users across 85 countries. Only 4 million of these users pay for a subscription. This 4% conversion rate supports a valuation between $10 billion and $12 billion. This valuation follows a $270 million secondary sale in January 2026. Over 50% of Fortune 500 companies use Notion in some capacity.

Coda and Confluence compete in the same space. Coda reported $41.1 million in revenue in October 2024 and holds a $1.4 billion valuation. Coda uses a per-doc-maker pricing model. This makes Coda cheaper for large teams where only a few people create documents. Coda’s users can save up to 78% compared to per-user models. Atlassian’s Confluence reported $1.6 billion in revenue for Q2. Cloud revenue for Atlassian reached $1.1 billion.

The scale remains the moat.

Comparing the workspace models

Notion functions as an all-in-one workspace. It uses a block-based system where everything is a page. You should look at the pricing gap between tiers. Coda functions as an app builder. It uses buttons, advanced formulas, and "Packs" for two-way sync with tools like Slack or Google Calendar. While Notion focuses on a flexible document workspace, Coda prioritizes powerful table functionality and automation, whereas Confluence provides a structured wiki experience that connects directly to the Atlassian ecosystem and Jira.

Notion has a polished mobile app. Coda’s mobile app is much weaker. Coda users report laggy performance and sign-in issues. Confluence serves engineering teams with high security. It maintains ISO 27001 and SOC 2 Type II certifications. It also provides a 99.9% uptime SLA. Confluence’s Rovo AI provides cross-tool search and 20+ pre-built agents for tasks like summarization and Q&A.

Notion performance degrades in large workspaces. Databases with hundreds of thousands of records or workspaces with 200 active users struggle.

Can Coda bridge the gap?

Notion wins for simplicity.