Alphabet Inc.’s Google (NASDAQ: GOOGL) has partnered with venture capital firm Accel to fund at least 10 early-stage Indian AI startups, marking Google’s first co-investment initiative in India. The move reflects the growing attention from U.S. tech giants toward India, a rapidly expanding market with nearly one billion internet users and significant opportunities in AI-driven innovation.

Strategic Investment in India’s AI Ecosystem

Under the partnership, Google’s AI Futures Fund and Accel will co-invest up to $2 million per startup, focusing on sectors such as entertainment, creativity, work, and coding. Prayank Swaroop, partner at Accel, noted that the initiative aims to empower Indian founders who are expected to play a key role in shaping the next era of global technology.

This announcement follows Google’s broader commitment to India’s AI ecosystem. In October 2025, the company revealed plans to invest $15 billion over five years to establish a cutting-edge AI data center in Andhra Pradesh, its largest investment in the country to date.

Google’s AI Futures Fund

Launched six months ago, the AI Futures Fund has already invested in over 30 companies, including Indian webtoon platform Toonsutra and U.S.-based legal-tech startup Harvey. Google has also collaborated with India’s largest telecom operator, Reliance Jio, to provide free access to its Gemini AI platform for over 505 million users.

Jonathan Silber, co-founder and director of the AI Futures Fund, said:
“We firmly believe that the founders in India are going to play a leading role in defining the next era of global technology. It’s critical to invest early, particularly in key markets like India, to support the next generation of AI leaders.”

India’s AI Market and Global Opportunities

India’s AI market is projected to reach $17 billion by 2027, according to IT industry body Nasscom and consulting firm BCG. Globally, AI spending is expected to reach $1.5 trillion in 2025 and exceed $2 trillion in 2026, according to market research firm Gartner.

U.S. tech giants, including Microsoft, Amazon, and OpenAI, are increasingly targeting India, recognizing the country’s enormous growth potential and the opportunity to build AI products tailored for a massive and diverse user base. Google’s strategic partnership with Accel signals a long-term commitment to the Indian AI startup ecosystem, enhancing both capital availability and technical support for early-stage ventures.

Outlook for AI Innovation in India

With rising investments from global players, India is emerging as a hub for AI research, development, and deployment. Startups funded through this initiative are expected to create innovative AI applications across creative industries, enterprise software, and digital services, contributing to India’s global AI footprint.

By combining Google’s AI expertise with Accel’s venture capital acumen, this partnership aims to nurture India’s AI talent pipeline and support the creation of globally competitive technology companies.