Replit, one of the most prominent rising stars in AI-assisted software development, has struck a strategic partnership with Microsoft that could significantly expand its reach while positioning Azure as a key player in the growing low-code/no-code development space.
Under the deal, Replit will become available through Microsoft’s enterprise cloud app marketplace, Azure Marketplace, enabling enterprise customers to purchase Replit subscriptions directly through Microsoft’s cloud platform. Additionally, Replit is integrating its platform with key Microsoft cloud services — including containers, virtual machines, and Microsoft’s flavor of Postgres, Neon Serverless Postgres, which is already supported by Replit’s backend.
The partnership means that Azure will capture revenue from Replit-built apps running in production, marking a mutually beneficial arrangement. While Microsoft already owns GitHub Copilot — one of the most widely used AI coding tools — Replit is not a direct competitor in the traditional sense. GitHub Copilot is geared toward professional developers using code editors like VS Code, and it competes more directly with tools like Cursor by Anysphere.
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By contrast, Replit is aimed at a wider audience, including novice users, business managers, and professionals with little or no programming experience. Its browser-based interface allows users to describe the kind of application they want, and the platform handles everything from database setup to storage and authentication. Experienced users can dig deeper, using Replit’s support for various programming languages to customize or extend functionality.
Competing With Figma for Prototyping — Not Copilot
This partnership is being framed as a design and prototyping solution for non-technical users, with the companies positioning the tool as something akin to Figma, rather than a traditional developer IDE. In this use case, a non-programmer — like a sales manager—could use Replit to create internal apps, such as a dashboard that tracks the correlation between contract renewals and customer support tickets.
“We are enabling all employees across all functions to develop apps, regardless of coding experience, so we are complementary to Copilot from that perspective,” a Replit spokesperson told TechCrunch.
Replit’s Explosive Growth
The deal follows a period of staggering growth for Replit. In June, CEO Amjad Masad revealed that the company grew from $10 million to $100 million in annual recurring revenue (ARR) in just six months, a tenfold leap that puts it in elite company among venture-backed software startups.
Replit raised $97.4 million in its last funding round at a $1.1 billion post-money valuation, backed by Andreessen Horowitz and supported by notable investors like Khosla Ventures, SV Angel, Coatue, Bloomberg Beta, Naval Ravikant, Y Combinator, and ARK Ventures. Masad said in June that the company has yet to touch most of its capital: “We still have over half our funding in the bank.”
Replit now claims over 500,000 business users on its platform, underlining its traction beyond just the hobbyist or solo developer crowd.
A Blow to Google Cloud?
The Microsoft deal could come as a blow to Google Cloud, which currently hosts many of Replit’s apps. Google had proudly featured Replit as a customer success story, but with Replit now integrating deeply into Microsoft Azure’s ecosystem, the partnership suggests a broader multicloud strategy that gives Replit flexibility and scalability — and gives Microsoft an edge in enterprise adoption.
However, Replit confirmed to TechCrunch that the deal with Microsoft is non-exclusive, meaning Google Cloud will continue to support Replit-hosted apps, but Azure will now serve as another major partner. This approach also leaves room for other vibe coders to strike similar integration deals with cloud platforms, signaling how rapidly the AI coding landscape is evolving.
Rising Competition in the “Vibe Coding” Arena
Replit’s rise comes amid stiff competition from other startups riding the same trend. Lovable, a European rival, has reportedly hit $50 million ARR and is said to be raising funds at a $2 billion valuation. Another startup, Bolt, hit $40 million ARR in just five months. These companies are defining what’s being dubbed the “vibe coding” space — a blend of AI, low-code, and user-friendly design-first programming experiences.
The Replit–Microsoft tie-up signals a broader shift in software development: more enterprise teams building internal tools without waiting for IT, and more non-engineers prototyping applications that once required full-stack developer support.
It also highlights Microsoft’s evolving strategy in AI and developer tooling. By supporting Replit — even while owning GitHub Copilot — Microsoft shows a growing interest in fostering diverse entry points into AI-powered software creation, from hardcore coders to curious first-timers.
With AI transforming the software stack at every level, this deal between Replit and Microsoft could mark a pivotal moment — not just for the two companies, but for the way software gets made across industries.