How AI startups are fueling Google’s booming cloud business

Google Cloud announced On Thursday, the rapidly rising AI-coding startups lovingly and windsurf added to his customer schedule. Both companies have chosen Google Cloud as their primary cloud computing provider, the newest sign of Google’s rising fame against larger Rivals AWS and Microsoft Azure.

The deals also emphasize Google’s efforts to make its cloud activities central in the future of the company.

Nowadays, Google Cloud is overshadowed by larger competitors such as AWS and Microsoft, as well as the much larger advertising activities of Google. But it sees up momentum.

Google Cloud is one of the fastest growing business lines in the company. In his last call for profit, Google said his cloud division achieved an annual run rate of $ 50 billion, and cloud chef Thomas Kurian said this week that the unit stood in line $ 58 billion in new income In the next two years. Google generated $ 43.2 billion in cloud services in 2024 and $ 33.1 billion in 2023.

Winning contracts with leading AI startups seems to be a large engine of the growth of Google Cloud. The division says it now works with nine out of 10 leading AI Laboratories, including safe super intelligence and OpenAi, and 60% of the generative AI startups in the world. In the past year, the company says that it has seen an increase of 20% in the number of new AI startups that Google Cloud chooses.

While Lovable and Windsurf, which was recently taken over by cognition, spend relatively little compared to leading AI Laboratories or large companies, the bet is that they will become larger companies in the future and be worth the investment.

Google says that the two atmospheric startups use Gemini 2.5 Pro to provide their products with power, which are also performed on Google Cloud infrastructure. Google says that windsurf also uses Gemini models in integrations with the AI ​​agent of Cognition, Devin.

The important cloud costs of training, sophistication and performing AI models have offered a major challenge for AI model developers, including Google DeepMind with its Gemini models. But it was a blessing for cloud companies. The global cloud market is expected to be greater than $ 400 billion In 2025 and will grow at a speed of 20% in the next five years, according to the market information and analysis company Synergy Research.

The company organized its first Google AI Builder’s Forum on Thursday, in which the hundreds of AI Startup founders brought together and announced more than 40 new AI Startups Building on Google Cloud. In addition to Lovable and Windsurf, Sequoia-Backed Factory Ai and Andreessen Horowitz-Stundered Krea AI belonged to the aforementioned customers.

Part of the reason that so many AI startups work with Google Cloud are the generous deals it offers. Many of the AI ​​startups Google works together with Starting on its Google for Startups Cloud Program, in which it offers $ 350,000 to cloud credits. Google Cloud also offers a special cluster of Nvidia GPUs for startups in the Y Combinator Accelerator program.