How AI startups are fueling Google’s booming cloud business
Google Cloud’s momentum is accelerating, and how AI startups are fueling Google’s booming cloud business is becoming clearer with every new deal. On Thursday, Google announced that fast-rising AI coding startups Lovable and Windsurf have selected Google Cloud as their primary cloud provider. This is the latest sign of how Google is using AI-driven demand to challenge rivals like AWS and Microsoft Azure.
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Google Cloud’s AI-driven momentum
Google Cloud is no longer just a supporting act to Google’s advertising empire. Instead, it’s evolving into one of the company’s fastest-growing divisions. In 2024, Google Cloud generated $43.2 billion, up from $33.1 billion in 2023. Just a year later, its annual run rate soared to $50 billion, with executives forecasting $58 billion in new revenue over the next two years.
This surge is being driven by partnerships with AI innovators. Google Cloud now works with nine of the top 10 AI labs worldwide and 60% of generative AI startups. That includes companies like Safe Superintelligence and even competitors such as OpenAI. Over the past year, Google says it has seen a 20% increase in the number of AI startups choosing its platform.
Why AI startups are turning to Google Cloud
The latest wins, Lovable and Windsurf (recently acquired by Cognition), may not yet spend at the scale of major AI labs. However, they represent a fast-growing customer base that values Google’s AI-first infrastructure, scalability, and global reach. For young companies building products powered by generative AI, reliability and speed are essential—and Google Cloud is positioning itself as the go-to partner.
Google has also leaned into AI-specific services like Vertex AI, TPU accelerators, and deep integrations with its own models. These investments make Google Cloud attractive to startups looking for more than just raw storage and compute—they want AI-optimized platforms built for experimentation and scaling.
The bigger picture: AI startups fueling Google’s growth
While AWS remains the market leader and Microsoft Azure continues to grow, Google’s bet on AI startups is reshaping the cloud race. Winning these early-stage companies doesn’t just boost revenue today—it creates long-term loyalty as startups grow into major enterprises.
In short, how AI startups are fueling Google’s booming cloud business reflects a broader shift: the future of cloud isn’t just about size, it’s about who owns the AI ecosystem. For now, Google Cloud is carving out a powerful niche by becoming the home for the next wave of AI innovation.
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