Google and Accel Launch $2M AI Bet on Indian Founders

✨TodayOnAI’s Daily Drop

• Google and Accel Launch $2M AI Bet on Indian Founders

• Character AI will offer interactive ‘Stories’ to kids instead of open-ended chat

• Warner Music signs deal with AI music startup Suno, settles lawsuit

• 💬 Let’s Fix This Prompt

• 🧰 Today’s AI Toolbox Pick

OPENAI

Google and Accel Launch $2M AI Bet on Indian Founders

🚀 TodayOnAI Insight: Google and Accel have partnered to co-invest in early-stage AI startups in India, marking the Google AI Futures Fund’s first global collaboration. The initiative targets Indian and diaspora founders building AI-native products from day one—with up to $2 million in funding and deep integration into Google’s AI ecosystem.

🔍 Key Takeaways:

• Joint Investment Model: Google and Accel will each invest up to $1M in selected startups through Accel’s Atoms program, launching its 2026 AI cohort.

• Comprehensive Founder Support: Startups receive up to $350K in Google Cloud, Gemini, and DeepMind credits, plus early access to APIs, models, and mentorship from Google and Accel.

• Global Immersion: The program includes sessions in London and the Bay Area, participation in Google I/O, and support from Google Labs and DeepMind research teams.

• Open Tech Stack: Startups are not required to use Google AI tools exclusively—flexibility remains for OpenAI or Anthropic integrations.

• Strategic Commitment: This move aligns with Google's growing presence in India, including its $15B AI data hub plan and $10B digitization fund.

💡 Why This Stands Out: This partnership reflects a growing global bet on India’s AI potential, despite its current underrepresentation in frontier model development. By marrying Accel’s local reach with Google’s global AI assets, the initiative signals a strategic shift: turning India’s tech talent and mobile-first user base into a hub for foundational AI innovation. The question now is—can India leap from SaaS strength to core AI breakthroughs?

Character.AI

Character AI will offer interactive ‘Stories’ to kids instead of open-ended chat

🚀 TodayOnAI Insight: Character.AI has launched “Stories,” a new interactive fiction format aimed at teen users, following its decision to block users under 18 from accessing its open-ended chatbots. The move reflects mounting scrutiny over the psychological risks of unrestricted AI conversations.

🔍 Key Takeaways:

• New format: “Stories” offers guided, choose-your-own-adventure-style fiction with popular AI characters—designed as a safer alternative to chatbots.

• Chatbot access restricted: As of this week, users under 18 can no longer engage with Character.AI’s open-ended chatbot experiences.

• Safety concerns drive change: The update follows lawsuits and growing concerns linking AI chatbot use to mental health issues, including user suicides.

• Mixed community response: Some teens on Reddit expressed disappointment, while others acknowledged the ban could help reduce unhealthy app dependence.

• Regulatory momentum: The decision aligns with California’s new rules on AI companions and a proposed federal bill to restrict AI interactions with minors.

💡 Why This Stands Out: Character.AI’s pivot signals a broader industry reckoning over how AI engages with minors. The launch of “Stories” reflects an effort to retain young users while reducing psychological risk and regulatory exposure. As AI becomes more embedded in daily life, where should the line be drawn between engagement and ethical design?

Warner AI

Warner Music signs deal with AI music startup Suno, settles lawsuit

🚀 TodayOnAI Insight: Warner Music Group has settled its copyright lawsuit with AI music startup Suno and forged a new licensing partnership that includes the sale of Songkick. The deal signals a broader industry pivot—moving from litigation to monetized collaboration in AI-driven music creation.

🔍 Key Takeaways:

• WMG and Suno reach licensing deal, ending their copyright dispute and enabling Suno to launch advanced, licensed AI music models in 2025.

• Suno acquires Songkick—a live music discovery app—from WMG, which had owned it since 2017.

• Paid subscriptions will be required to download Suno-generated music; free-tier users can only play or share tracks.

• WMG artists will retain full control over how their likenesses, voices, and works are used in AI-generated music.

• Suno recently raised $250M in Series C funding at a $2.45B valuation, backed by Menlo Ventures, NVentures (Nvidia), and others.

💡 Why This Stands Out: WMG’s shift from legal action to licensing with both Suno and Udio marks a strategic realignment in the music industry’s approach to generative AI. Rather than block innovation, major labels now seek to shape it—balancing artist rights with new revenue opportunities. The question isn’t whether AI will transform music, but how labels and creators will control its evolution.

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🧰 Today’s AI Toolbox Pick

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