- US tech giants are ramping up investments in India, now recognised as a strategic growth market with nearly a billion internet users.
- AI Futures Fund firmly believes that founders in India will play a leading role in defining the next era of global technology.
Alphabet’s Google and leading venture capital firm Accel have announced a landmark partnership to fund at least ten early-stage Indian artificial intelligence (AI) startups, marking Google’s first dedicated funding tie-up of this kind, according to senior executives from both companies.
Under the new initiative, the Google AI Futures Fund and Accel will jointly invest up to $2 million in each selected startup, aiming to accelerate India’s emerging AI ecosystem.
The fund’s launch comes amid a surge of US tech giants—including Microsoft, Amazon, and OpenAI—ramping up investments in India, now recognised as a strategic growth market with nearly a billion internet users.
Major commitment to local AI innovation
The partnership follows Google’s October announcement of a $15 billion investment over five years to build a major AI data centre in Andhra Pradesh, its largest-ever commitment to India. The AI Futures Fund, established six months ago, has already invested in over 30 ventures—including Indian webtoon player Toonsutra and US legal-tech firm Harvey.
Additionally, Google’s collaboration with Reliance Jio will provide 505 million Indian users with free access to its Gemini AI platform.
Jonathan Silber, co-founder and director of the AI Futures Fund, emphasised India’s pivotal role in shaping global technology’s next chapter. “We firmly believe that founders in India will play a leading role in defining the next era of global technology. That’s why we’re focusing on investing early, especially in markets like India—so we can help build the next generation of AI leaders,” Silber said.
India’s AI market is projected to reach $17 billion by 2027, according to data from Nasscom and consulting firm BCG.
Globally, total AI spending is expected to approach $1.5 trillion in 2025, crossing $2 trillion in 2026, research firm Gartner projects.
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