Replit announced a strategic partnership with Microsoft on Tuesday that promises to benefit both companies. As part of the deal, Replit will be available through Microsoft’s enterprise cloud app store, Azure Marketplace, enabling Microsoft customers to purchase Replit subscriptions directly. Additionally, Replit is integrating its technology with several Microsoft cloud services including containers, virtual machines, and Neon Serverless Postgres—Microsoft’s version of the Postgres database that Replit supports. This integration means that Microsoft stands to earn revenue from Replit-powered apps running in production on Azure.
Complementary Rather Than Competing With GitHub Copilot
While Microsoft’s GitHub Copilot is a popular AI-powered coding assistant, Replit targets somewhat different users and use cases. Copilot mainly serves programmers as an in-browser AI coding assistant, whereas Replit caters not only to programmers but also to users with little coding experience. Replit users can create entire web apps from natural language prompts, with Replit handling database setup, authentication, and storage automatically. Programmers can then customize these apps using multiple supported programming languages.
The partnership is positioned as a tool for prototyping and app design, competing with platforms like Figma, and aimed at non-technical business users such as sales managers who want to build apps—like tools tracking correlations between contract renewals and customer support tickets.
Replit has been a breakout star in the vibe-coding space. In June, CEO Amjad Masad revealed that the company grew its annual recurring revenue from $10 million to $100 million in just six months. The startup recently raised $97.4 million led by Andreessen Horowitz at a $1.1 billion valuation and claims over 500,000 business users on its platform. Despite the new Microsoft deal, Replit continues to host most apps on Google Cloud and maintains a nonexclusive relationship with Google.
Replit competes with other fast-growing startups such as Lovable, which reportedly is raising a round at a $2 billion valuation, and Bolt, which reached about $40 million ARR in five months.
What The Author Thinks
This partnership highlights how startups like Replit are smartly diversifying their cloud dependencies to tap into multiple ecosystems. By not abandoning Google Cloud while expanding into Microsoft Azure, Replit ensures it’s not overly reliant on a single provider. This multi-cloud approach is a smart hedge in a competitive market, allowing the company to appeal to a wider business audience and maximize growth opportunities.
