Replit has announced a significant partnership with Microsoft. This places Replit on Microsoft’s Azure Marketplace and integrates its services with core Azure infrastructure.
Although this deal is great for both Replit and Microsoft, it adds pressure to seeming rivals like Google Cloud.
Azure Marketplace
Replit will now be available through Microsoft’s Azure Marketplace. This allows enterprise customers to purchase Replit subscriptions directly from Microsoft’s cloud platform.
In addition, Replit will integrate with Azure services, including containers, virtual machines, and Neon Serverless Postgres.
Neon is Microsoft’s version of Postgres, a popular open-source database engine. Since Replit supports Postgres, this integration offers better performance and simplified deployment.
It also means that apps built using Replit and hosted on Azure will generate revenue for Microsoft.
Not a Copilot Competitor
Microsoft already offers GitHub Copilot, a widely used AI coding assistant. However, Replit and Copilot serve different users.
Copilot is built for developers who write and maintain code. Replit, on the other hand, serves both developers and non-programmers.
Its interface allows users to create applications using natural language commands. Replit then handles the technical setup, such as databases, authentication, and storage.
More advanced users can dive into the code and customize their projects. Replit supports several programming languages, making it accessible to a broad audience.
App Creation
Microsoft and Replit are promoting the partnership as a design and prototyping solution. This positions them alongside tools like Figma and Retool.
The platform targets non-developers in business roles. For example, a sales manager can use Replit to build an internal tool that tracks support tickets and contract renewals. No prior coding experience is required.
A Replit spokesperson explained the approach: “We are enabling all employees across all functions to develop apps, regardless of coding experience. So we are complementary to Copilot from that perspective.”
Rapid Growth
Replit’s growth has been fast and impressive. In June, CEO Amjad Masad stated that the company jumped from $10 million to $100 million in annual recurring revenue in just six months.
The startup raised $97.4 million in its last funding round, led by Andreessen Horowitz.
Other investors included Khosla Ventures, Y Combinator, Bloomberg Beta, SV Angel, and Naval Ravikant. That round brought Replit’s valuation to $1.1 billion.
Replit reports that over 500,000 business users are now on its platform. Masad also confirmed the company still has more than half of its funding available.
The Competition
Replit faces competition from other fast-growing startups. An example is Lovable, a European company, which recently reached $50 million in annual revenue.
It is also seeking new funding at a reported $2 billion valuation. Another competitor, Bolt, hit $40 million in revenue within five months of launching.
These companies all fall under the growing category of “vibe coders”, tools that blend AI and low-code platforms to make app development easier and faster.
The Impact on Google Cloud
Replit apps have traditionally been hosted on Google Cloud. Google even highlighted the partnership publicly. The new deal with Microsoft, however, changes that dynamic.
While the partnership is non-exclusive, it gives Microsoft new leverage. Replit confirmed it is not ending its relationship with Google Cloud. Rather, it is expanding to support Azure customers as well.
Still, this marks a shift. Google Cloud may now lose some share of apps created and deployed through Replit. Microsoft, in contrast, stands to gain revenue and developer engagement.