India's AI start-up founders head to US chasing capital, talent
What's the story
Over 100 Indian artificial intelligence (AI) start-up founders have relocated or are planning to relocate to the United States. The move is mainly due to better access to customers, capital, and advanced AI ecosystems. Start-ups like Composio, Meetstream.ai, Smallest.ai, Beatoven.ai, and GetCrux have already shifted their base in the last few years. Others are also in the process of doing so.
Ecosystem shift
US: A hub for AI innovation
The US is seen as a major hub for AI innovation, with many founders targeting large enterprises as their primary market. This trend is especially true for those who have access to AI talent and investors willing to take risks. "The biggest factor is the speed at which things move in the US, which in turn results in faster growth and decision making from investors and customers," said Sidhdharth Sivasubramanian, co-founder of Meetstream.ai.
Talent magnet
San Francisco Bay Area: AI's global center
Most founders are heading to the San Francisco Bay Area, which is considered the center of the global AI ecosystem. "When you are building in AI, it is important to be close to the ecosystem and density of talent. Right now, that is the US," said Mansoor Rahimat Khan, co-founder of Beatoven.ai.
Investment trends
Investors note a shift in AI startup base
Nitin Sharma, partner at AI investor Antler India, has seen a major shift in the number of founders wanting to spend time in the Bay Area after their first funding round. Mohamad Faraz, co-founder and managing partner of Upsparks Capital, also noted that US companies are more open to AI adoption and willing to pay for it. However, moving to the US isn't easy. Investors have said there's a lot more uncertainty around relocating due to longer visa processing times.