Google and venture capital firm Accel have joined forces to identify and fund promising early-stage artificial intelligence (AI) startups in India. The collaboration, announced Tuesday, will see up to $2 million invested in each selected company through Accel’s Atoms program, with both firms contributing up to $1 million. This is the first such partnership for Google’s AI Futures Fund, launched earlier this year, underscoring the strategic importance of the Indian market.
India’s Emerging AI Ecosystem
India represents a significant opportunity in the AI landscape. It boasts the world’s second-largest internet and smartphone user base after China, alongside a deep pool of engineering talent. However, the country currently lags behind the U.S. and China in pioneering AI development.
Recent moves by major AI players like OpenAI and Anthropic, who have established offices in India, along with increased early-stage investment from global investors, signal a shift. The potential is clear: India’s large mobile-first population, expanding cloud infrastructure, and lower software costs could make it a major AI hub – provided talent and demand translate into original research and products.
Investment Focus and Support
The funding will target startups working across a wide range of AI applications, including creativity, entertainment, coding, and enterprise software. Accel partner Prayank Swaroop emphasized the goal of “building AI products for billions of Indians, as well as supporting AI products built in India for global markets.”
Startups selected for the program will also receive up to $350,000 in Google Cloud compute credits, early access to Gemini and DeepMind models, mentorship from Google and Accel experts, and immersion programs in London and Silicon Valley.
Google’s Commitment to India
This partnership builds on Google’s existing $15 billion investment in a new data center and AI hub in India, as well as a $10 billion digitization fund announced in 2020. Jonathan Silber, co-founder of the Google AI Futures Fund, stated, “India has an incredible history of innovation… its founders are going to be playing a leading role in the next generation of AI-led global technology.”
The collaboration is not structured as a direct pathway to future acquisitions or cloud customer conversions, according to Silber. Instead, Google aims to foster genuine AI innovation within India’s growing ecosystem.
The key takeaway: Google and Accel are betting on India’s potential to become a major force in the global AI landscape, providing both capital and resources to nurture the next generation of AI startups.
