Google and venture capital firm Accel have selected five startups for the latest cohort of their India focused accelerator programme after reviewing more than 4,000 applications, with organisers noting that a large majority of artificial intelligence proposals lacked original technology.
The companies revealed that nearly 70 percent of the AI related startup pitches they evaluated were what investors often describe as “AI wrappers”, businesses that build products on top of existing artificial intelligence models without developing their own core technology.
The selections were made under the Atoms accelerator initiative, a programme designed to support early stage startups building foundational technology solutions across various sectors. According to organisers, the rigorous selection process prioritised companies developing original engineering and scalable technology rather than those relying primarily on existing AI platforms.
Executives involved in the programme said the high number of AI wrapper pitches reflects a broader trend across the global startup ecosystem, where entrepreneurs are increasingly building services around widely available AI models rather than creating entirely new systems.
Such startups typically integrate large language models or machine learning tools developed by major technology companies and package them into applications targeting specific industries or user needs. While these solutions can deliver value in certain cases, investors say many lack strong long term defensibility because competitors can easily replicate the same approach.
By contrast, the five startups selected for the accelerator were chosen because they are developing deeper technological capabilities, including proprietary systems and infrastructure that could differentiate them in the competitive technology landscape.
The Atoms programme, jointly backed by Google and Accel, aims to help early stage companies refine their products, connect with investors and scale their technologies through mentorship and access to industry expertise. The initiative has become one of the more influential startup development platforms in India’s growing technology ecosystem.
Accel India has long been one of the most active investors in the country’s startup market, supporting companies across sectors ranging from fintech and software to consumer technology and artificial intelligence.
India has seen a rapid surge in AI focused startups in recent years as entrepreneurs attempt to capitalise on the global boom in artificial intelligence technologies. The rise of widely accessible AI tools has significantly lowered the barrier to entry for software development, enabling founders to launch products more quickly.
However, the accessibility of these technologies has also led to a flood of applications that investors say lack genuine innovation. Many startup founders are building user interfaces or niche services that rely heavily on existing AI models developed by larger companies rather than creating new algorithms or infrastructure themselves.
Organisers of the Atoms programme said the evaluation process focused heavily on technical depth and the ability of startups to develop proprietary intellectual property that could sustain long term competitive advantages.
The selected companies are expected to receive mentorship from experienced entrepreneurs, engineers and investors while gaining access to resources that can help them refine their business strategies and accelerate product development.
For Google, the accelerator aligns with its broader efforts to support the growth of technology ecosystems in emerging markets such as India, where the startup sector has expanded rapidly over the past decade.
India is now home to one of the world’s largest pools of software developers and technology entrepreneurs, making it a key market for innovation in artificial intelligence, fintech and enterprise software.
Despite the large number of AI related startup proposals received by the accelerator, organisers emphasised that the future of the sector will likely be defined by companies capable of building deeper technological foundations rather than simply repackaging existing tools.
The decision to select startups focused on original technology rather than AI wrappers highlights a growing shift among investors who are increasingly prioritising innovation and defensible intellectual property as the global AI startup landscape becomes more crowded.
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