Depending on their stage of growth, startups may also qualify for equity investment from Google as well as non-dilutive funding.
According to Google, the AI Futures Fund was created to help promising startups accelerate development by combining access to frontier AI technology with capital and technical expertise.
For Novastar Ventures, the partnership reflects growing confidence that Africa is becoming an important market for practical AI innovation rather than simply a consumer of global technology.
Founded in 2011, the Nairobi-headquartered investor has backed more than two dozen companies across the continent, including retail distribution platform TradeDepot and off-grid solar company SunCulture.
Steve Beck, Co-founder and Managing Partner at Novastar Ventures, said African entrepreneurs are applying AI to address some of the continent’s most pressing development and commercial challenges.
“Africa has become one of the world’s most important markets for applied AI. Entrepreneurs there are using AI not merely for productivity gains or entertainment—they are solving fundamental problems for everyday people,” Beck said.
He added that the new lab is designed to help founders combine frontier AI technologies with local market knowledge to build businesses capable of delivering impact at scale.
“We’re excited to help exceptional African entrepreneurs harness frontier technologies to scale their impact,” Beck said.
Several companies already backed by Novastar demonstrate how AI is being integrated into core business operations.
Kenyan healthcare provider Penda Health uses AI-powered clinical decision support tools to improve diagnosis and treatment.
Education company NewGlobe applies AI to support teaching and monitor learning outcomes for millions of students through its government partnerships.
Agri-tech company Agrails is using AI to help smallholder farmers access climate risk insurance, expanding financial protection for agricultural producers who have historically been underserved.
The launch comes as global technology companies increase their investment in Africa’s AI ecosystem.
Although venture capital funding across the continent slowed during the broader global market downturn, investors continue to back startups building digital infrastructure and AI-driven products for high-impact sectors.
Health, agriculture, education, financial services, and climate technology remain among the strongest areas of investor interest, driven by rising digital adoption and demand for locally developed solutions.
The first cohort of startups and researchers is expected to be announced in September.
If successful, the initiative could strengthen Africa’s pipeline of AI-native companies while improving access to the capital, technical resources, and global partnerships needed to build internationally competitive technology businesses.