Alphabet’s Google and venture capital firm Accel will partner to fund at least 10 early-stage Indian AI startups, marking the U.S. technology giant’s first funding partnership, top executives at both companies said.
Furthermore, the move comes as major U.S. tech firms like Microsoft, Amazon, and OpenAI make a beeline for the world’s most populous nation, which they view as a critical growth market where nearly a billion people use the internet.
Under the partnership, Google’s AI Futures Fund and Accel will co-invest up to $2 million in each startup, Prayank Swaroop, partner at Accel, told in an interview, with the investments focusing on broad areas such as entertainment, creativity, work, and coding.
Additionally, the announcement follows Google’s statement in October that it would invest $15 billion over five years to build an AI data center in the southern Indian state of Andhra Pradesh, representing its biggest-ever investment in the country.
Moreover, its AI Futures Fund, launched six months ago, has funded more than 30 companies, including Indian webtoon startup Toonsutra and U.S.-based legal-tech firm Harvey. Google has also partnered with India’s largest telecom operator, Reliance Jio, to provide free access to Gemini AI for 505 million users.
“We firmly believe that the founders in India are going to be playing a leading role in defining that next era of global technology,” Jonathan Silber, co-founder and director of Google’s AI Futures Fund, said.
“…we think that it’s critical to invest in the early stage. Particularly in key markets like India, so that we can be at the forefront of investing in the next generation of AI leaders.”
IT industry body Nasscom and consulting firm BCG project India’s AI market to reach $17 billion by 2027. Meanwhile, market research firm Gartner estimates global AI spending will reach nearly $1.5 trillion in 2025 and exceed $2 trillion in 2026.
