Nairobi-based venture capital firm Novastar Ventures has partnered with Google to launch an applied artificial intelligence laboratory designed to give African startups direct access to frontier AI tools and funding. The initiative, known as the Applied AI Lab, opened for applications on July 1 and will select a first cohort of five to ten startups and researchers working on AI-driven solutions to everyday African problems.
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The lab is backed by Google’s AI Futures Fund and supported by Google DeepMind and Google Research, giving selected founders early access to some of the company’s most advanced AI models. Beyond model access, participants will receive technical mentorship, Google Cloud credits and go-to-market support, with Google also offering potential equity and non-dilutive funding to promising ventures. Joining Novastar in providing mentorship and operational guidance are three other Africa-focused investors, Ventures Platform, 4DX Ventures and Norrsken22.
Steve Beck, co-founder and managing partner at Novastar, said the continent has become one of the most important markets globally for applied AI, noting that entrepreneurs there are using the technology to solve fundamental problems rather than chase productivity gains alone. He pointed to portfolio companies already embedding AI into their operations as proof of concept. Kenyan primary care chain Penda Health uses AI powered clinical support tools to sharpen diagnosis and treatment decisions, while NewGlobe, which partners with governments to deliver standardised education, deploys AI to support teaching and track learning outcomes for millions of children. Agri-tech venture Agrails is also cited, using AI to help smallholder farmers access climate risk insurance for the first time.
Novastar, founded in 2011, has backed more than two dozen companies across Africa, including retail distribution platform TradeDepot and off-grid energy provider SunCulture. Its involvement in the new lab reflects a broader pattern of global cloud and AI providers deepening their footprint on the continent even as overall venture funding contracted last year alongside a global downturn. Investors continue to see long-term upside in Africa’s young population, rapid digitisation and its ability to leapfrog legacy infrastructure, with AI-native startups in health, agriculture and education drawing particular attention because they address problems that remain acute across much of sub-Saharan Africa.
For Google, the lab forms part of a wider strategy to deepen its understanding of AI use cases emerging specifically from African markets, while opening up tools and resources typically reserved for large technology companies to smaller, high-potential founders. Beck said the goal is to help exceptional African entrepreneurs harness frontier technologies to scale their impact well beyond the continent. The first cohort selected for the program is expected to be announced in September, a milestone that will offer the clearest early signal of which sectors and startups Google and Novastar believe are best positioned to build globally significant AI businesses out of Africa.
The launch adds to a growing list of AI investments targeting the continent this year, as major technology companies increasingly treat Africa not just as a market for existing products but as a source of original AI innovation shaped by local context and need.
