Google Cloud announced Thursday a multi-year partnership with artificial intelligence ( AI ) coding startup Replit, intensifying competition in the fast-growing AI coding tools market against rivals Anthropic and Cursor. The collaboration positions Google to capture a larger share of the vibe-coding phenomenon that has transformed software development, as companies race to monetize AI-powered programming tools that are generating billions in revenue.

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Under the agreement, Replit will expand usage of Google Cloud services, integrate additional Google AI models onto its platform, and jointly support enterprise AI coding applications. Google will continue serving as Replit's primary cloud provider.  

The deal comes as the AI coding market heats up, with Anthropic's Claude Code hitting   $1 billion in run-rate revenue   in   November   and   Cursor reaching   a   $29.3   billion   valuation   following a November funding round.

Replit closed a   $250 million funding round in September that almost tripled its valuation to $3 billion. The startup repoted explosive growth, expanding annualized revenue from $28 million to $150 million in under a year.   New data from fintech company Ramp shows Replit had the fastest new customer growth among software vendors, while Google is adding customers and spending faster than any other company on Ramp's platform.

The new alliance strengthens Google's competitive position as it rides momentum from its new top-scoring model, Gemini 3. Alphabet shares have risen more than 12% since the model's debut, reflecting investor confidence in the company's AI strategy.

Vibe-Coding Drives New Market Opportunity

Vibe-coding emerged as a phenomenon earlier this year after AI models became more adept at generating code using only natural language prompts. This software development method allows a large language model to generate code from conversational instructions, with human developers guiding the process through a feedback loop rather than writing code line-by-line. The approach enables users with little programming experience to create functioning code and potentially full applications.

Replit, founded nearly a decade ago, has established itself as a leader in this space by positioning its product as accessible to non-developers. The startup claims over 500,000 business users on its platform, with significant traction among teams in product, design, operations, sales, and marketing functions across businesses. Two key use cases have emerged: rapid prototyping by product and design teams to shorten development timelines, and business apps development by sales, marketing, and operations teams building customized software where traditional SaaS tools fall short.

The market opportunity has attracted significant venture capital and corporate attention. Replit competes with European startup Lovable, which reportedly hit   $50 million in annualized revenue and is raising   funds at around a $2   billion   valuation, and Bolt, which grew approximately $40   million in annualized revenue in about five months.

Enterprise Infrastructure and Model Integration

The partnership centers on deepening technical integration between Replit's platform and Google Cloud's infrastructure. Replit utilizes Google Cloud's Vertex AI to run and scale its AI agent, Replit Agent, which is powered by models including Anthropic's Claude 3.5 Sonnet. The startup integrates Google's Gemini 1.5 Flash to enhance features like Replit Assistant, which aids in code improvement, error fixing, and new feature development.

Replit's enterprise customers already run their applications on Google Cloud's infrastructure, with deployments hosted on Google Cloud, storage powered by Google Cloud Storage, and security features including Google Cloud Armor protection against DDoS attacks and encrypted secrets using Google Cloud's secure storage. This enterprise-grade infrastructure provides the scalability and security that large organizations require for mission-critical applications.

The collaboration reflects Google Cloud's strategy to provide a platform and ecosystem that empowers organizations to use cloud and AI technologies to drive innovation. "Bringing Replit to Google Cloud Marketplace will help customers quickly deploy, manage, and grow the development environment on Google Cloud's trusted, global infrastructure," said Dai Vu, Managing Director of Marketplace & ISV GTM Programs at Google Cloud. "Replit can now securely scale and support customers on their digital transformation journeys."

Navigating Cloud Provider Relationships

The multi-year Google partnership follows a period of strategic maneuvering by Replit across cloud providers. In July, the startup announced a strategic partnership with Microsoft, a deal that appeared to challenge its existing Google Cloud relationship. Applications built and run through Replit had typically been hosted on Google Cloud, making Replit such a significant customer that Google had previously profiled the partnership.

However, Replit confirmed the Microsoft deal was nonexclusive, meaning the startup would continue supporting Google Cloud while expanding to serve Microsoft customers. In September, Replit reinforced its Google relationship by listing its services on Google Cloud Marketplace, streamlining procurement for enterprise customers and accelerating organizational adoption.

"Our mission is to empower entrepreneurial individuals to transform ideas into software — regardless of their coding experience or whether they're launching a startup or innovating within an enterprise," said Amjad Masad, CEO and co-founder of Replit. "Google Cloud's secure, scalable infrastructure and our listing on Google Cloud Marketplace play an important role in making that mission a reality."

In September, Replit expanded its Google Cloud collaboration by listing services on Google Cloud Marketplace, streamlining enterprise procurement and accelerating organizational adoption. Replit runs its AI agent on Google Cloud's Vertex AI, utilizing enterprise-grade infrastructure and security to support its global user base.

Masad said in June the company still had over half its funding in the bank and had not needed to raise additional capital. The non-exclusive approach to cloud partnerships means other popular vibe-coding platforms could strike similar deals with multiple providers, potentially fragmenting the competitive landscape further as established cloud giants compete for this emerging workload category.