Replit announced a strategic partnership with Microsoft on Tuesday, enabling its availability through Azure Marketplace and integrating with Microsoft cloud services, while maintaining its existing Google Cloud relationship.
The new partnership establishes Replit’s presence within Microsoft’s enterprise cloud app store, Azure Marketplace. This integration permits Microsoft customers to purchase Replit subscriptions directly through the marketplace. Replit will also integrate its technology with several Microsoft cloud services, including containers, virtual machines, and Neon Serverless Postgres, Microsoft’s version of the PostgreSQL database that Replit supports. This integration is expected to generate revenue for Azure from Replit applications deployed in production environments.
Microsoft already offers GitHub Copilot, a widely used AI-powered code editor. However, Replit does not directly compete with Copilot. Copilot functions as an AI-powered, in-browser coding assistant similar to Anysphere’s Cursor, primarily targeting experienced programmers. Replit, while popular among programmers, also caters to individuals with limited coding experience. Its platform allows users to create web applications using natural language prompts, with Replit handling the backend setup, including database configuration, authentication, and storage. Users with programming knowledge can then customize features directly, as Replit supports multiple programming languages.
Both companies are positioning this offering as a prototyping and design tool, a direct competitor to platforms like Figma. They are also targeting non-programmer business managers, enabling them to build self-service applications. For instance, a sales manager could develop a tool within Replit to analyze correlations between contract renewals and customer support tickets. A Replit spokesperson informed TechCrunch, “We are enabling all employees across all functions to develop apps, regardless of coding experience, so we are complementary to Copilot from that perspective.”
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Replit is a prominent entity in the “vibe-coding” sector. In June, CEO Amjad Masad stated via tweet that the company’s annual recurring revenue (ARR) grew from $10 million to $100 million in six months. The company’s last funding round secured $97.4 million at a post-money valuation of $1.1 billion. This round was led by Andreessen Horowitz, with participation from Khosla, Coatue, SV Angel, Y Combinator, Bloomberg Beta, Naval Ravikant, and ARK Ventures. Masad confirmed in June that the company has not needed to raise additional capital since, stating, “We still have over half our funding in the bank.” Replit reports over 500,000 business users on its platform.
Replit operates in a competitive market that includes other rapidly expanding startups. Lovable, a European company, reportedly achieved $50 million ARR around the same period and is in the process of raising a new round at an approximately $2 billion valuation. Bolt also grew to about $40 million ARR in roughly five months.
This partnership represents a challenge for Google Cloud, as applications developed and run through Replit have typically been hosted on Google Cloud. Google had previously highlighted its partnership with Replit. However, Replit clarified to TechCrunch that this new deal is non-exclusive. Replit is not discontinuing its relationship with Google Cloud but is expanding to support Microsoft customers. This non-exclusive arrangement suggests that other “vibe coders” may also pursue similar agreements with Microsoft.
