AI Startups Drive Growth in Google Cloud

Google Cloud is gaining momentum in the competition against Amazon Web Services (AWS) and Microsoft Azure. 

The company recently secured two fast-growing AI coding startups, Lovable and Windsurf, as new customers. 

On Thursday, Google confirmed that Lovable and Windsurf have selected Google Cloud as their main provider. 

Both startups now depend on Google’s infrastructure to power and scale their products.

Windsurf, now owned by Cognition, is already using Google’s Gemini models in its integrations.

Lovable relies on Gemini 2.5 Pro to enhance its coding tools. Although these startups are still small compared to major AI labs, Google views them as long-term investments.

Cloud Business

Google Cloud has grown quickly over the past two years.

• In 2023, it generated $33.1 billion in revenue.
• In 2024, that number rose to $43.2 billion.
• This year, it reached a $50 billion annual run rate.
• Cloud chief Thomas Kurian also reported that the division secured $58 billion in contracts for the next two years. 

Why Google

First, Google provides generous support through its Google for Startups Cloud Program, which offers up to $350,000 in credits. This financial help reduces early-stage costs.

Second, Google gives startups access to Nvidia GPUs. These resources, offered to companies in the Y Combinator accelerator, are often difficult to secure elsewhere.

Third, Google has built an AI-first ecosystem. Startups can directly integrate Gemini models with cloud services, making development faster and smoother.

Because of these advantages, Google now works with nine of the top ten AI labs. It also hosts 60% of the world’s generative AI startups.

Cost of AI 

Training and operating large AI models is expensive. Even Google DeepMind faces rising costs with its Gemini line. However, these costs benefit cloud providers.

According to Synergy Research, the global cloud market will exceed $400 billion in 2025. It is projected to grow 20% each year for the next five years.

This expansion gives Google a chance to capture more share as AI workloads increase. Google is also focusing on community building. 

This week, it hosted its first Google AI Builder’s Forum. Hundreds of founders attended the event. 

Google also announced more than 40 new startups working on its platform. Among them were Sequoia-backed Factory AI and Andreessen Horowitz-backed Krea AI.