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Alphabet’s Google and global venture capital firm Accel have announced a new partnership aimed at funding at least 10 early-stage Indian AI startups, marking Google’s first investment collaboration of this kind. The initiative highlights India’s rising importance in the global AI ecosystem, where close to a billion people are now online and digital adoption continues to accelerate.
As part of the partnership, Google’s AI Futures Fund and Accel will co-invest up to $2 million in each selected startup. According to Accel partner Prayank Swaroop, the focus areas will span entertainment, creativity, productivity, and coding—sectors expected to see rapid transformation as AI tools become more embedded in everyday use. The collaboration comes as major U.S. tech companies, including Microsoft, Amazon, and OpenAI, increase their presence in India to tap into its expanding tech-driven economy.
This announcement follows Google’s pledge in October to invest $15 billion over five years to establish a major AI data center in Andhra Pradesh—its largest investment in India to date. Since launching six months ago, the AI Futures Fund has already backed more than 30 companies, including India-based webtoon platform Toonsutra and U.S. legal-tech startup Harvey. Google is also working with India’s largest telecom provider, Reliance Jio, to offer free access to its Gemini AI to more than 505 million users, further strengthening its footprint in the market.
Jonathan Silber, co-founder and director of Google’s AI Futures Fund, emphasized India’s critical role in shaping the next wave of global technology innovation. He noted that early-stage investment is essential for identifying and supporting future AI leaders, particularly in high-growth markets like India.
Industry projections reinforce this momentum. Nasscom and BCG estimate India’s AI market will reach $17 billion by 2027, while Gartner forecasts global AI spending to hit $1.5 trillion in 2025 and surpass $2 trillion by 2026.
