Several Indian founders have relocated to the US over the past year to be closer to the AI hub in San Francisco to tap talent, stay close to customers and spot trends early. The sector has also seen increased interest from the investors. Generative AI startups in India raised $525 million in 2024, a fourfold jump from $129 million in 2021.
The founder of an AI startup, currently in the US to raise funds, said it had initially planned to hire a team in the US, particularly fresh graduates. “After the talk about increasing H-1B wages and the uncertainty around the visa, we are now planning to hire in India,” he said. However, the company still plans to hire Americans for sales and business development roles.
On September 19, the Trump administration issued a proclamation that mandated $100,000 in fees for new H-1B petitions for entry into the US. The development could force the fledgling sector to alter growth strategies. ET had earlier reported that companies had already been already facing hurdles in securing even temporary visitor and business visas (B1/B2) or the O-1 visa, which is preferred by founders.
Immigration experts said the new H-1B fee could weigh heavily on startups. “For startups, $100,000 is a significant amount and might not make sense for them,” said Gnanamookan Senthurjothi, founder of The Visa Code.