Exclusive: Google inks cloud deal with Sequoia
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Google is announcing a partnership with Sequoia Capital on Wednesday that will allow the venture firm's portfolio AI companies to gain access to an extended array of cloud credits, enhanced support and other services.
Why it matters: The move could give Google a leg-up on rivals OpenAI and Microsoft, while allowing Sequoia-backed startups to save some money on cloud computing.
Driving the news: Under the terms of the deal, which is non-exclusive, Sequoia-backed companies can get up to $500,000 worth of free cloud computing, training and other services. (Google offers up to $350,000 in cloud computing credits and other benefits to other AI startups.)
- Companies can also get migration support and up to 45 minutes in daily "white glove" support from Google staffers.
The big picture: Google has partnerships with other VC firms and accelerators, including Y Combinator and 500 Global.
- Microsoft also has a number of programs geared toward AI startups, including partnerships with Y Combinator and other incubators and investors. One such program offers up to $150,000 in Azure cloud computing credits as well as mentorship and guidance.
What they're saying: James Lee, the general manager of Google Cloud's startups and AI program, said that beyond the cloud credits, Google is able to help startups compare various options, including Google and third-party models. "You don't have to invent every wheel," he said in an interview.
- Sequoia partner Bogomil Balkansky said the deal is particularly helpful for pre-seed stage companies that might only have a few million dollars in funding, a huge chunk of which could be eaten up by cloud costs.
- It also helps ensure portfolio companies can access sufficient computing. "We're still living in an environment of shortage," Balkansky told Axios.
Yes, but: The deal doesn't guarantee Sequoia companies will build on Google's cloud over rivals. "Certainly it is not compulsory for our companies to build on Google Cloud," Balkansky said.
