CryptoCurrency
Alphabet (GOOGL) Stock: Google Cloud Lands Major AI Coding Partnership With Replit
TLDR
- Google Cloud signed a multi-year deal with AI coding platform Replit to challenge competitors like Anthropic and Cursor
- Replit reached a $3 billion valuation after raising $250 million and growing revenue from $2.8 million to $150 million annually
- The partnership expands Google’s AI coding reach to non-technical users through “vibe-coding” technology
- Alphabet shares jumped 12% since launching Gemini 3, which reportedly pulled users from ChatGPT
- Replit showed the fastest customer growth among software vendors tracked by fintech firm Ramp
Google Cloud secured a multi-year partnership with AI coding startup Replit on Thursday. The deal positions Google to compete harder in the exploding AI coding market.
Replit will expand its use of Google Cloud infrastructure. The startup will also add more Google AI models to its platform. Google remains Replit’s main cloud provider.
The partnership targets enterprise customers looking for AI coding tools. Replit specializes in making coding accessible to people without programming backgrounds. This approach falls under the emerging “vibe-coding” category.
“The goal for us, and Google, is to make enterprise vibe-coding a thing,” said Replit CEO Amjad Masad. He noted the tools let designers, product managers, and other employees build solutions without engineering degrees.
Replit’s Explosive Growth Story
Replit raised $250 million in September at a $3 billion valuation. That nearly tripled the company’s previous worth. The startup’s revenue growth matched its valuation surge.
Annualized revenue rocketed from $2.8 million to $150 million in under 12 months. Fintech company Ramp reported Replit had the fastest new customer growth of any software vendor on its platform.
The company founded nearly a decade ago now leads the vibe-coding space. AI models can now generate working code from simple text prompts. Users without coding skills can build applications using natural language.
Google Battles AI Coding Rivals
The Replit deal arms Google against tough competition. Anthropic said Tuesday its Claude Code product reached $1 billion in run-rate revenue. Cursor raised funding in November at a $29.3 billion valuation while hitting $1 billion in annual revenue.
Google’s new Gemini 3 model scored at the top of AI benchmarks. Alphabet shares climbed over 12% since Gemini 3 launched. Reports claim the model pulled users from ChatGPT and triggered a “code red” response at OpenAI.
Enterprise Push Could Drive Cloud Growth
The Replit partnership could boost Google Cloud adoption among businesses. By serving non-developers, Google expands beyond traditional engineering teams. This opens new customer segments for cloud services.
Google leads in new customer additions and spending growth on Ramp’s platform. The company outpaces all other vendors tracked by the fintech firm. Pairing that momentum with Replit’s customer growth creates opportunity for both companies.
GOOGL stock dropped more than 1% in midday trading Thursday. Retail sentiment on Stocktwits turned bearish over 24 hours. Shares closed at $180.78 Wednesday before the announcement. Google continues to add Google AI models to Replit’s platform for enterprise coding use cases.
