how ai startups are fueling google’s booming cloud business

Google Cloud Gains Momentum with AI Startups

Google Cloud recently announced the addition of Lovable and Windsurf, two rapidly growing AI coding startups, to its customer base. These companies have selected Google Cloud as a cloud computing provider, demonstrating Google’s increasing competitiveness against industry leaders such as AWS and Microsoft Azure.

Expanding Cloud Presence

Google Cloud currently manages a substantial portion of Lovable and Windsurf’s cloud and AI workloads. However, it’s important to note that these startups aren’t bound by contract to exclusively utilize Google’s services.

These agreements underscore Google’s strategic focus on establishing its cloud business as a core component of its future growth.

Growth and Revenue

Currently, Google Cloud operates behind larger competitors like AWS and Microsoft, and also remains smaller than Google’s dominant advertising division. Nevertheless, the cloud division is experiencing significant upward trajectory.

Google Cloud is among the company’s fastest-expanding business segments. Recent earnings reports indicate an annual run rate of $50 billion, with cloud leader Thomas Kurian announcing $58 billion in new revenue projected over the next two years. The company reported $43.2 billion in cloud services revenue for 2024, compared to $33.1 billion in 2023.

Attracting AI Innovation

Securing contracts with prominent AI startups appears to be a key driver of Google Cloud’s expansion. The division now collaborates with nine of the top ten AI labs, including Safe Superintelligence and OpenAI, and 60% of the world’s generative AI startups.

Over the past year, Google Cloud has observed a 20% increase in the number of new AI startups choosing its platform.

Although Lovable and Windsurf, recently acquired by Cognition, currently represent relatively modest spending compared to leading AI labs or large corporations, the expectation is that their future growth will justify the investment.

Leveraging Gemini

Google states that both startups utilize Gemini 2.5 Pro to power their respective products, all hosted on Google Cloud infrastructure. Furthermore, Windsurf is integrating Gemini models with Cognition’s AI agent, Devin.

In a statement to TechCrunch, Windsurf CEO Jeff Wang indicated that the startup employs a variety of cloud providers, including Google Cloud, but refrained from specifying a primary provider.

Lovable declined to provide comment.

The Rise of Cloud Computing for AI

The substantial costs associated with training, fine-tuning, and deploying AI models present a significant challenge for AI developers, including Google DeepMind and its Gemini models. However, this has proven beneficial for cloud businesses.

According to Synergy Research, a market intelligence and analytics firm, the global cloud market is projected to surpass $400 billion in 2025, with an anticipated growth rate of 20% over the next five years.

Google AI Builder’s Forum

Google hosted its inaugural Google AI Builder’s Forum on Thursday, bringing together hundreds of AI startup founders and announcing over 40 new AI startups building on Google Cloud. Among the customers highlighted were Factory AI, backed by Sequoia, and Krea AI, supported by Andreessen Horowitz.

Incentives for AI Startups

A significant factor attracting AI startups to Google Cloud is the advantageous deals offered. Many startups begin with the Google for Startups Cloud Program, which provides $350,000 in cloud credits.

Additionally, Google Cloud offers a dedicated cluster of Nvidia GPUs for startups participating in the Y Combinator accelerator program.

Clarification on Cloud Provider Agreements

Update 9/19/25: This article has been revised to clarify the terminology surrounding “primary cloud computing provider.” Neither Lovable nor Windsurf has entered into a preferred cloud provider agreement, which would legally obligate them to conduct the majority of their operations with a single cloud provider.