google teams up with accel to hunt for india’s next ai breakouts

Google and Accel Collaborate to Fuel Indian AI Startups

A groundbreaking partnership has been established between Google and Accel, focused on identifying and providing funding to India’s most nascent AI startups. This collaboration marks a first for the Google AI Futures Fund, which was initiated earlier in the year.

Joint Investment Initiative

Accel and Google jointly announced on Tuesday their commitment to invest up to $2 million in each startup. This will be facilitated through Accel’s Atoms program, with each firm contributing up to $1 million. The 2026 cohort will specifically target founders based in India and those of Indian origin who are developing AI products from their inception.

Focus on the Indian Market and Beyond

“The primary aim is to foster the creation of AI solutions tailored for the vast Indian population, while simultaneously supporting the development of AI products originating in India for deployment in global markets,” explained Prayank Swaroop, a partner at Accel, in an interview with TechCrunch.

India's Potential as an AI Hub

India presents a compelling market opportunity, boasting the world’s second-largest base of internet and smartphone users, surpassed only by China. Furthermore, the nation possesses a substantial pool of skilled engineering talent. However, it currently lags behind the U.S. and China in frontier model development and the creation of companies at the cutting edge of AI technology.

Shifting Landscape and Growing Investment

This situation is beginning to evolve, with major players like OpenAI and Anthropic recently establishing offices within the country. Global investors are also increasing their early-stage commitments. The expectation is that India’s large, mobile-first user base, expanding cloud infrastructure, and comparatively low software costs could position it as a significant AI market.

Investment Areas and Future Technologies

Swaroop indicated that investments will encompass a wide range of applications, including creativity, entertainment, coding, and the future of work. “This future of work is broadly defined, encompassing SaaS and a multitude of other applications,” he stated to TechCrunch. “It could even extend to foundational models.”

The firms will also proactively seek out areas where large language models are anticipated to advance over the next 12-24 months, focusing on Indian startups innovating in these areas.

Comprehensive Support for Founders

In addition to capital, founders will have access to up to $350,000 in compute credits for Google Cloud, Gemini, and DeepMind. They will also receive early access to Gemini and DeepMind models, APIs, and experimental features.

The program will provide support from Google Labs and DeepMind research teams, opportunities for co-development, monthly mentorship from Accel partners and Google technical leads, and immersive experiences in London and the Bay Area, including attendance at Google I/O.

Founders will also benefit from marketing support through Accel and Google’s global networks, access to the Atoms founder community, and integration with Google’s AI builder ecosystem.

Google's Commitment to India

“India has a remarkable legacy of innovation, and we are confident that its founders will be instrumental in shaping the next generation of globally impactful, AI-driven technology,” said Jonathan Silber, co-founder and director of the Google AI Futures Fund, in a statement to TechCrunch. “This collaboration represents the Futures Fund’s inaugural partnership globally, and we specifically chose India due to its significance.”

Google has demonstrated a long-term commitment to India’s digital transformation, having invested billions of dollars over the years.

Recent Investments and Initiatives

This partnership builds upon Google’s recent announcement of a $15 billion plan to construct a 1-gigawatt data center and AI hub in India. In 2020, the company also unveiled a $10 billion digitization fund, which has supported companies such as Bharti Airtel, Reliance Jio, and Walmart-owned Flipkart.

Last month, Google collaborated with Reliance to provide millions of Jio users with complimentary access to AI Pro.

The Google AI Futures Fund

Launched in May, the Google AI Futures Fund is dedicated to investing in and collaborating with AI startups worldwide. It has already backed companies like Replit and Harvey, and has directly invested in Indian startups including Toonsutra and STAN.

Equity and Partnership Dynamics

Silber clarified to TechCrunch that Google will hold equity in the startups funded through the partnership and will have a “material presence,” but refrained from disclosing the specifics of its equity stakes compared to Accel’s.

Strategic Alignment and Market Expertise

“Our goal is to collaborate with the market leader who possesses an in-depth understanding of the country and can connect us with early-stage founders at an early, informative stage, ultimately driving meaningful progress,” Silber explained.

Flexibility in Technology Choices

While utilizing Google products is anticipated, both Silber and Swaroop emphasized to TechCrunch that there will be no requirement for startups to exclusively use Gemini or any other Google product.

“Google’s technology is often the optimal choice, but alternatives like Anthropic or OpenAI may be more suitable in certain cases. We are not imposing strict requirements limiting startups to Google’s models,” Silber stated. “Our aim is to identify unique integrations that leverage Google AI technology.”

Accel’s Atoms Program

Accel’s pre-seed and seed platform, Atoms, launched in 2021, has supported over 40 companies that have collectively secured more than $300 million in subsequent funding. The program was expanded this year to include Indian-origin founders residing abroad.

Recent Accel Partnerships

This collaboration follows Accel’s recent partnership with Prosus to co-invest in Atoms X, supporting early-stage Indian founders developing large-scale solutions for the country’s mass market.

Long-Term Vision and Innovation

Silber assured TechCrunch that Google is not structuring the partnership as a pathway to future acquisitions or to acquire new cloud customers.

“We are not a sales organization, and our primary objective is not to secure new cloud customers,” he clarified. “Our key performance indicator is simply to witness the emergence of the next wave of AI innovation from India.”