US visa changes hit Indian AI startups' hiring

Business Oct 21, 2025

Indian-founded AI startups in the US are finding it harder to hire tech talent after a new $100,000 H-1B visa fee for fresh applications kicked in this September.
Even though the fee doesn't apply to workers switching jobs, worries about future visa changes and job security are making top engineers think twice about joining these startups.

Startups forced to hire abroad

Because of these stricter rules, many international engineers now prefer big companies with more stability over riskier (but innovative) startups.
This shift is squeezing Indian-founded AI firms' ability to attract talent and could slow down their growth.
With tech layoffs already making things complicated, some founders are hiring technical teams in India and keeping only business roles in the US.