Google teams up with Accel to hunt for India’s next AI breakouts

Google has joined hands with Accel in a groundbreaking initiative aimed at discovering and nurturing the next wave of AI startups in India. This collaboration marks the debut of the Google AI Futures Fund, which was established earlier this year. On Tuesday, the two organizations unveiled their plan to invest up to $2 million in each selected startup through Accel's Atoms program, with both Google and Accel contributing $1 million each. The 2026 cohort will specifically target founders within India and the Indian diaspora who are committed to developing AI-driven products right from the outset. Prayank Swaroop, a partner at Accel, shared insights with TechCrunch, emphasizing the goal of creating AI solutions that cater to billions of Indians while also supporting products developed in India for international markets. India presents a unique opportunity as it boasts the world's second-largest internet and smartphone user base, following only China, along with a wealth of engineering talent. However, the nation has yet to establish itself as a leader in cutting-edge AI model development, a domain that remains dominated by the U.S. and China. Despite this, there are signs of a shift, as notable companies like OpenAI and Anthropic have recently set up operations in the region, attracting global investors who are increasingly interested in early-stage funding. The initiative bets on India's large mobile-first demographic, improving cloud infrastructure, and relatively low software costs to transform the country into a significant player in the AI landscape—provided that the ecosystem can effectively convert talent and demand into original research and innovative products. Swaroop indicated that investments would span various sectors, including creativity, entertainment, coding, and workplace applications. In addition to capital, participating founders will receive support in the form of compute credits worth up to $350,000 across Google Cloud, Gemini, and DeepMind. They will also gain early access to models, APIs, and experimental features from Gemini and DeepMind. The program will provide mentorship from Accel partners and technical leads from Google, along with co-development opportunities, and immersion sessions in key tech hubs like London and the Bay Area, including events like Google I/O. Further support includes marketing assistance through Accel and Google's extensive global channels, as well as access to the Atoms founder network and Google's AI builder ecosystem. Jonathan Silber, co-founder and director of the Google AI Futures Fund, remarked on India's rich history of innovation and expressed confidence that its founders will significantly influence the future of AI-driven technology. This partnership follows Google's ambitious $15 billion plan to establish a 1-gigawatt data center and AI hub in India, along with a $10 billion digitization fund announced in 2020 that has already supported major companies like Bharti Airtel, Reliance Jio, and Flipkart. Google also recently collaborated with Reliance to provide millions of Jio users complimentary access to AI Pro. Silber elaborated on the AI Futures Fund, which was launched in May to focus on global AI startup investments. It has already supported companies like Replit and Harvey, as well as Indian startups such as Toonsutra and STAN. He noted that Google aims to be a substantial participant in the startups funded through this initiative but refrained from disclosing specific equity stake comparisons with Accel. While it is anticipated that applicants will utilize Google’s products, both Silber and Swaroop clarified that there is no obligation for startups to exclusively adopt Gemini or other Google technologies. Silber explained that the intention is to explore unique integrations that leverage Google AI technology, rather than imposing strict requirements. Accel's Atoms program, established in 2021, has already backed over 40 companies that have collectively secured more than $300 million in subsequent funding. This year, the program expanded to include Indian-origin founders living abroad. The recent collaboration comes shortly after Accel's partnership with Prosus to co-invest in Atoms X, which focuses on early-stage Indian founders developing scalable solutions aimed at benefiting the wider population. Silber emphasized that this partnership is not designed as a route to future acquisitions or new cloud customers, stating that the primary objective is to foster innovation in the AI sector emerging from India.