Google, Accel Partner to Find India’s Top AI Startups

In a landmark initiative aimed at fueling India’s artificial intelligence ecosystem, Google has teamed up with venture capital firm Accel to identify and finance the country’s most promising early-stage AI startups. This collaboration, a first for the Google AI Futures Fund, will see both organizations jointly investing up to $2 million in each selected startup, with each contributing as much as $1 million. The program will focus on the 2026 cohort of entrepreneurs based in India or from the Indian diaspora who are developing AI-first products from inception.

According to Prayank Swaroop, a partner at Accel, the vision is twofold: building AI products tailored for India’s vast population and supporting innovations created in India that can compete on the global stage. India presents a compelling opportunity, boasting the world’s second-largest internet and smartphone user base after China, along with a deep reservoir of engineering talent. However, the country has yet to produce many companies advancing the technical frontiers of AI, an area still dominated by the United States and China.

Recent trends suggest this may be changing. Leading AI firms such as OpenAI and Anthropic have announced plans to establish a presence in India, while international investors are increasing their early-stage commitments. The optimism stems from India’s massive, mobile-first population, rapidly expanding cloud infrastructure, and relatively low software development costs. The challenge lies in transforming this potential into original AI research and commercially viable products.

Swaroop indicated that the investment scope is intentionally broad, covering sectors like creativity, entertainment, coding, and enterprise software. He emphasized that “the future of work here is more encompassing, which is essentially SaaS, and all other applications,” and noted that the partnership will also explore opportunities in foundational models. The collaborators plan to identify emerging trends in large language models over the next 12 to 24 months and seek out Indian startups aligned with those directions.

Beyond financial backing, selected founders will receive up to $350,000 in compute credits for Google Cloud, Gemini, and DeepMind services. They will also gain early access to models, APIs, and experimental features from Gemini and DeepMind. Additional benefits include technical and research support from Google Labs and DeepMind, co-development projects, monthly mentorship sessions with Accel partners and Google technical leads, and immersive programs in London and the Bay Area, including attendance at Google I/O. Marketing assistance through Accel and Google’s global networks, along with entry into the Atoms founder network and Google’s AI builder community, will also be provided.

Jonathan Silber, co-founder and director of the Google AI Futures Fund, highlighted India’s strong track record of innovation and expressed confidence that Indian entrepreneurs will shape the next wave of AI technology worldwide. He described the partnership as the Futures Fund’s first of its kind globally and pointed to Google’s long-standing commitment to India’s digital transformation, which includes multibillion-dollar investments over the years.

This initiative follows Google’s recent announcement of a $15 billion plan to construct a 1-gigawatt data center and AI hub in India. The company had previously launched a $10 billion digitization fund in 2020, backing firms such as Bharti Airtel, Reliance Jio, and Flipkart. Just last month, Google partnered with Reliance to provide millions of Jio users with complimentary access to AI Pro services.

The Google AI Futures Fund, introduced in May, serves as a dedicated platform for investing in and collaborating with AI startups around the world. It has already supported companies like Replit and Harvey, in addition to making direct investments in Indian startups including Toonsutra and STAN.

Silber confirmed that Google will hold equity positions in the startups funded through this partnership and will be “a material presence,” though he did not disclose specific details regarding the size of its stakes relative to Accel’s. He characterized the collaboration as an effort to join forces with a market leader that possesses deep local expertise, enabling engagement with founders at an earlier, more formative stage.

While participation in the program does not mandate the exclusive use of Google’s AI models like Gemini, Silber and Swaroop both clarified that startups are free to choose the best available tools, whether from Google, Anthropic, OpenAI, or others. Silber explained, “Sometimes, Google’s technology is the best. Other times, you’ll see Anthropic or OpenAI. So, we’re not putting firm requirements that say you can only use Google’s models.” Instead, the goal is to explore unique integrations that leverage Google’s AI technology where it offers a clear advantage.

Launched in 2021, Accel’s Atoms program has already backed more than 40 early-stage companies, which have collectively raised over $300 million in subsequent funding rounds. This year, the program was expanded to include Indian-origin founders residing outside the country. The Google-Accel partnership follows closely on the heels of another Atoms collaboration with Prosus, designed to support early-stage Indian founders developing scalable solutions for mass markets.

Silber emphasized that the partnership is not structured as a funnel for future acquisitions or cloud customer recruitment. “We’re not a sales team, so we’re not specifically looking to sign up new cloud customers. That’s not our goal,” he stated. “In terms of KPIs, our objective is simply to see the next wave of innovation in the AI space coming out of India.”

(Source: TechCrunch)