Google (GOOGL.US) has reportedly signed a non-exclusive cloud computing agreement with venture capital firm Sequoia Capital.

The deal reportedly allows AI startups backed by Sequoia to receive up to $500,000 in free cloud computing and training services from Google.

Google currently offers up to $350,000 in cloud credit to other AI startups, including those affiliated with venture capital firm Y Combinator, which can use clusters of Nvidia (NVDA.US) GPUs and Google TPU.

James Lee, general manager of Google Cloud's startup and AI programs, said in addition to cloud credit, Google can help startups compare options, including Google and third-party models. "You don't have to reinvent every wheel," he said in an interview.

Bogomil Balkansky, a partner at Sequoia, said the deal is especially helpful for seed-stage companies, which may have only a few million dollars and a large portion of which could be eaten up by cloud costs.

The deal also helps ensure portfolio companies have enough computing power. "We still live in a world of scarcity," Balkansky said.

Indeed, most venture capital firms are eager to invest in AI startups. Andreessen Horowitz has purchased and stored thousands of GPUs, including many Nvidia H100 processors, to win deals for AI startups.

Sequoia has made a big bet on a number of large tech companies, including Google, Nvidia, Apple (AAPL.US) and Cisco (CSCO.US).