A Major Push to Identify India’s Earliest-Stage AI Innovators
In a notable partnership, Google has teamed up with venture capital firm Accel to find and fund the next generation of AI-focused startups from India and its global community. Announced on Tuesday, this collaboration marks a unique global effort under Google’s newly established AI Futures Fund, which aims to invest in promising AI companies worldwide.
The initiative seeks to direct funding, computing resources, research access, and mentorship to founders creating AI products from the start. It specifically targets startups that can influence large markets in India or grow globally from Indian roots.
Up to $2 Million for Every Startup in the New Atoms Cohort
Through this partnership, Google and Accel plan to invest as much as $2 million in each startup chosen for the 2026 cohort of Accel’s Atoms program, which is designed for pre-seed and seed-stage companies. Each firm will contribute up to $1 million to every selected startup.
This marks a significant change in India’s early-stage AI funding scene, where average pre-seed investments typically range from $200,000 to $500,000. The larger investment pool indicates that global investors increasingly see early AI projects as needing substantial capital and advanced computing power.
The cohort will include founders based in India, along with members of the Indian diaspora who are working on AI products abroad.
“Building AI Products for Billions” – The Core Thesis
Prayank Swaroop, a partner at Accel, laid out the thesis as helping innovators create AI solutions for both India’s vast user base and global markets that are eager for affordable, scalable AI software.
“The goal is to build AI products for billions of Indians and support products created in India for global use,” Swaroop told TechCrunch. “The future of work here is broader, mainly focused on SaaS and other applications.”
According to him, the investment strategy covers nearly every area where AI can add value – from creative tools and entertainment to boosting developer productivity, automating enterprises, and even developing foundational models.
Why Google and Accel Are Looking at India Now
India presents a unique mix of conditions that make it an appealing space for testing and scaling AI innovations:
1. A Massive Digital User Base
India is the second-largest market in the world for internet and smartphone users, following only China. This creates a large natural environment for AI products intended for scale, mobile-first use, and diverse languages.
2. Deep Technical Talent
The country produces tens of thousands of engineering graduates each year and has a growing number of AI researchers and machine learning engineers. However, India still lags behind the U.S. and China in developing cutting-edge models – an area the partnership aims to change.
3. Cloud and Compute Infrastructure Expanding Rapidly
With major companies investing heavily in India – including Google’s recent $15 billion commitment for a 1-gigawatt AI-ready data center – the nation is quickly gaining computing resources.
4. Lower Software Development Costs
India offers a more cost-effective environment for creating and training AI systems compared to more established markets.
AI Activity in India Is Accelerating
While India hasn’t historically been a hub for advanced AI model development, the situation is evolving. Both OpenAI and Anthropic recently opened offices in India, showing global trust in the country’s talent pool.
Investors like Peak XV, Lightspeed, and Nexus Venture Partners have also increased their early-stage AI investments. The new partnership between Accel and Google adds to the trend of focusing on deep tech and AI-driven experimentation.
What Founders Will Receive Beyond Capital
The partnership offers more than just funding. Each selected startup will have access to:
-
- Up to $350,000 in computing credits
This includes credits for Google Cloud, Gemini, and DeepMind products.
-
- Early access to advanced Google models
Founders will gain early API access and experimental features from Gemini and DeepMind.
-
- Technical and research collaboration opportunities
Google Labs and DeepMind teams will provide hands-on support, including joint development sessions.
-
- Mentorship from Accel and Google leaders
Monthly deep dives with Accel partners and Google’s AI leads will guide product and tech development.
-
- Global immersion sessions
Founders will engage in programs hosted in London, Silicon Valley, and at Google I/O.
-
- Marketing and ecosystem access
Startups will be highlighted through Google and Accel’s global channels and plugged into the Atoms founder network.
This blend of funding, computing resources, research access, and distribution is something few early-stage programs globally can offer.
Google: “India Will Lead the Next AI Wave”
Jonathan Silber, co-founder and director of the Google AI Futures Fund, highlighted why India was selected for this program’s first global collaboration.
“India has a remarkable history of innovation, and we strongly believe its founders will play a key role in the next wave of AI-driven global technology,” Silber told TechCrunch.
He called the partnership a significant presence among the investors of selected startups, though he did not reveal how Google’s stakes will compare to those of Accel.
Not a Pathway to Acquisitions – Or Forced Product Lock-In
Silber made it clear that Google is not setting up the program to serve as a channel for future acquisitions or cloud revenue.
“We’re not a sales team, so we’re not specifically aiming to sign up new cloud clients. That’s not our goal,” he said.
He also stressed that the program does not require startups to only use Google’s AI models or infrastructure.
“At times, Google’s technology is the best. At other times, it might be Anthropic or OpenAI,” Silber said. “We don’t impose strict requirements that say you must use Google’s models.”
Instead, Google wants to co-create unique solutions with startups where it makes sense – a method that aligns with its strategy of being a partner, not a gatekeeper.
Accel’s Atoms Program: A Growing Powerhouse
Launched in 2021, Accel Atoms has supported over 40 companies, which have collectively raised more than $300 million in follow-on funding. Earlier this year, Accel expanded Atoms to include founders of Indian origin working abroad, enhancing its pipeline of global AI innovation.
This new partnership follows another recent collaboration between Accel and Prosus to co-invest in Atoms X, which supports founders addressing India’s large-scale, mass-market challenges.
Taken together, these efforts reflect Accel’s strategy to lead in the earliest stages of AI and deep-tech investment in India.
A Partnership Designed for Long-Term Impact
For Google, this collaboration is part of a broader, long-term strategy to deepen its involvement in the Indian tech ecosystem. The company’s investments in India – including a $10 billion digitization fund and a new 1GW AI data center – reflect long-term confidence in the country’s digital infrastructure and entrepreneurial drive.
For Accel, it provides the opportunity to shape the next phase of India’s AI startup ecosystem by engaging with founders during the early stages.
Together, the firms believe that the next major AI breakthrough could very well come from India – and they want to ensure early access to the innovators who will create it.
