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Alphabet’s Google and venture capital firm Accel have announced a new partnership to co-fund early-stage artificial intelligence startups in India, marking Google’s first collaborative investment initiative of this kind. Executives from both companies told Reuters that the program will support at least 10 startups, underscoring the rapid acceleration of AI investment in one of the world’s most dynamic technology markets.
Under the arrangement, Google’s AI Futures Fund and Accel will jointly invest up to $2 million in each selected startup. Accel partner Prayank Swaroop said the focus will span a broad range of AI applications, including entertainment, creativity, workplace productivity and developer tools.
The move comes as global technology giants intensify their presence in India’s fast-expanding digital economy. Microsoft, Amazon and OpenAI have recently ramped up initiatives in the country, which is now seen as a critical frontier for AI adoption, supported by nearly a billion internet users and a rapidly growing pool of engineers and developers.
Google’s increased investment posture reflects this shift. In October, the company committed $15 billion over five years to build a new AI data center in Andhra Pradesh—its largest-ever investment in India. Its AI Futures Fund, launched just six months ago, has already backed more than 30 companies globally, including Indian digital comics platform Toonsutra and U.S.-based legal-tech firm Harvey. Google has also partnered with Reliance Jio to offer free access to its Gemini AI model to more than 500 million mobile users.
Jonathan Silber, co-founder and director of the AI Futures Fund, said India’s startup ecosystem is poised to shape the next decade of global technology innovation. “We firmly believe that the founders in India are going to be playing a leading role in defining that next era of global technology,” he said, adding that early-stage investment is crucial for staying ahead of emerging AI breakthroughs.
India’s AI market is projected to reach $17 billion by 2027, according to estimates from Nasscom and Boston Consulting Group. Globally, AI spending is accelerating at an even faster pace, with Gartner forecasting nearly $1.5 trillion in spending in 2025 and more than $2 trillion in 2026.
The new Google–Accel initiative signals growing confidence in India’s ability to produce globally competitive AI companies—and reflects the national and international race to secure leadership in what many regard as the next epoch-defining technology.
Under the arrangement, Google’s AI Futures Fund and Accel will jointly invest up to $2 million in each selected startup. Accel partner Prayank Swaroop said the focus will span a broad range of AI applications, including entertainment, creativity, workplace productivity and developer tools.
The move comes as global technology giants intensify their presence in India’s fast-expanding digital economy. Microsoft, Amazon and OpenAI have recently ramped up initiatives in the country, which is now seen as a critical frontier for AI adoption, supported by nearly a billion internet users and a rapidly growing pool of engineers and developers.
Google’s increased investment posture reflects this shift. In October, the company committed $15 billion over five years to build a new AI data center in Andhra Pradesh—its largest-ever investment in India. Its AI Futures Fund, launched just six months ago, has already backed more than 30 companies globally, including Indian digital comics platform Toonsutra and U.S.-based legal-tech firm Harvey. Google has also partnered with Reliance Jio to offer free access to its Gemini AI model to more than 500 million mobile users.
Jonathan Silber, co-founder and director of the AI Futures Fund, said India’s startup ecosystem is poised to shape the next decade of global technology innovation. “We firmly believe that the founders in India are going to be playing a leading role in defining that next era of global technology,” he said, adding that early-stage investment is crucial for staying ahead of emerging AI breakthroughs.
India’s AI market is projected to reach $17 billion by 2027, according to estimates from Nasscom and Boston Consulting Group. Globally, AI spending is accelerating at an even faster pace, with Gartner forecasting nearly $1.5 trillion in spending in 2025 and more than $2 trillion in 2026.
The new Google–Accel initiative signals growing confidence in India’s ability to produce globally competitive AI companies—and reflects the national and international race to secure leadership in what many regard as the next epoch-defining technology.
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