Google Cloud is rapidly growing, and much of that growth comes from doing business with the next generation of AI startups. Recent partnerships have brought names like the A.I. coding start-ups Lovable and Windsurf, which has selected Google Cloud as their hosting service. These tie-ups further Google’s efforts toward building up its cloud business, thereby competing effectively against AWS and Azure.
The popularity of cloud business itself is so evident in the financial results of Google Cloud. The arm is now on pace for an annual run rate that would yield $50 billion in revenue, while forecasts suggest it will generate a further $58 billion of new sales over the next two years. Google’s cloud services revenue reached $43.2 billion in 2024, up from $33.1 billion in 2023. One of the leading drivers behind this uptick has been the company’s ability to sign deals with top AI startups: nine out of ten top AI labs and 60% of generative AI startups worldwide. Indeed, in the course of the past year we have seen new AI startups on Google Cloud grow by 20%.
It also has strong support programs for startups in place, like the Google for Startups Cloud Program, which makes AI companies particularly keen on joining the fold there. This initiative gives upto 350,000$ worth of credits to start ups and so is popular for start ups. Startup firms also enrolled in Y Combinator’s accelerator programme get access to dedicated clusters of Nvidia GPUs, which are necessary for training and deploying advanced AI models. These assets are enabling startup teams to benefit from cutting-edge technologies such as Google’s Gemini 2.5 Pro, giving them access to the capability and scale needed for pioneering AI solutions.
Finally, Google’s continued investment in AI startup companies as well as its massive cloud infrastructure acts as a key accelerant to the growth of Google Cloud. Google has competitive advantages and strategy to boost its cloud computing offerings in an increasingly competitive market.
