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How AI startups are fueling Google’s booming cloud business | TechCrunch

How AI startups are fueling Google’s booming cloud business | TechCrunch

Google Cloud Announce On Thursday, it added a fast-up AI coding startup cute and to its clients roster. Both companies have chosen Google Cloud as their major cloud computing provider, the latest sign of Google’s rise in prominence to larger competitors AWS and Microsoft Azure.

The deals also highlight Google’s efforts to make its cloud business more core to the future of the company.

Today, Google Cloud is overshadowed by big competitors such as AWS and Microsoft, as well as Google’s larger advertising business. But it is moving upward.

Google Cloud is one of the company’s fastest growing business lines. Google said in its last earnings call that its cloud division has an annual running rate of $50 billion, cloud head Thomas Kurian said this week. New revenue rose by $58 billion In the next two years. Google created $43.2 billion in cloud services in 2024 and $33.1 billion in 2023.

Winning contracts with leading AI startups seems to be a big driver of Google Cloud’s growth. The department said it now works with nine of the 10 leading AI labs, including Super smart safe and Openaiand 60% of Generative AI startups worldwide. Last year, the company said the number of new AI startups choosing Google Cloud increased by 20%.

Although it’s cute and winding recently Obtained through cognitionThe relatively less money spent than leading an AI lab or a large enterprise is that they will become larger businesses in the future and are worth investing in.

Google says the two Vibe coding startups use Gemini 2.5 Pro to power their products, which can also run on Google Cloud Infstruct. Google says Windsurf is also using the Gemini model in integration with the cognitive AI agent Devin.

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The huge cloud cost of training, fine-tuning and running AI models presents significant challenges to AI model developers, including Google DeepMind, whose Gemini model. But this is a boon for cloud businesses. The global cloud market is expected to surpass $400 billion In 2025, it will grow at a rate of 20% over the next five years, according to a collaborative research by Market Intelligence and Analytics Corporation.

The company held its first Google AI Builders Forum on Thursday, which brought together the founders of hundreds of AI startups and announced more than 40 new AI emerging startup buildings on Google Cloud. These include cute and meandering surfing, both unicorns in the “Vibe coded” space, as well as factory AI supported by Sequoia and Krea AI supported by Andreessen Horowitz.

Part of the reason so many AI startups work with Google Cloud is the generous deal it offers. Many AI startups Google and its Google launch the Google for Startups Cloud Program, which provides $350,000 in cloud points. Google Cloud also provides Dedicated clusters of NVIDIA GPUs For start-up in the Y-combination accelerator program.

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