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H-1B fee shock: SaaS and AI startups rethink hiring strategy as $100,000 levy threatens talent flow

Internet

Internet · 23d ago

H-1B fee shock: SaaS and AI startups rethink hiring strategy as $100,000 levy threatens talent flow

Indian SaaS and AI startups are rethinking their US hiring and expansion plans after Washington proposed a steep $100,000 annual H-1B visa fee. The move could significantly raise the cost of relocating engineers and managers to the US, the largest market for most software startups. Founders say this will impact the traditional route of sending Indian talent to the US and may push companies to hire locally or in alternative markets. Prodigal’s CEO Shantanu Gangal noted that the ROI on US education and relocation will no longer make sense for many students, while SuperOps’ CEO Arvind Parthiban said startups will now prioritize hiring where it’s most cost-effective, not necessarily in the US.

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H-1B sparks homecoming; Indian IT's $100k headache

Economic Times

Economic Times · 22d ago

H-1B sparks homecoming; Indian IT's $100k headache

The U.S. government's proposed $100,000 fee on H-1B visa applications may redirect global tech talent back to India, potentially bolstering its AI, SaaS, and deep-tech sectors. The fee could cause a reverse brain drain, as U.S. firms avoid high costs of sponsoring new hires. Indian IT companies face increased costs, potentially affecting project margins and timelines. Meanwhile, several Indian techies explore alternative visas or remote work options in response to the potential changes.

Hiring strategy of Indian AI startups in US goes for toss - The Economic Times

Economic Times

Economic Times · 22d ago

Hiring strategy of Indian AI startups in US goes for toss - The Economic Times

Indian AI startups are reassessing their US hiring strategies due to the proposed $100,000 H-1B visa fee by the Trump administration. While some startups are rethinking hiring plans, others see minimal impact. Many founders have moved to the US to access better talent and investment opportunities. However, due to visa uncertainties, some plan to focus on hiring in India instead. The increased fee could significantly affect startup growth strategies, given the high cost.

Trump imposes $100K H-1B visa fee from Sept 21; could impact Indian tech workers

Internet

Internet · 24d ago

Trump imposes $100K H-1B visa fee from Sept 21; could impact Indian tech workers

US President Donald Trump has signed an executive order imposing a $100,000 fee for each H-1B visa application, effective September 21, 2025, for 12 months. The move aims to curb “systemic abuse” of the program, encourage hiring of American workers, and reduce reliance on foreign talent. Indians, who account for over 70% of H-1B holders, will be most affected — renewals will become costly, job mobility limited, and many may consider returning to India or moving to Canada, the UK, or UAE. Immigration lawyer Sophie Alcorn warns this creates major uncertainty for Indian professionals. The order is expected to face legal challenges, as critics question its basis and its impact on US tech companies’ ability to hire specialized talent.

Tremors in Tech Inc as Trump rocks H-1B dream - The Economic Times

Economic Times

Economic Times · 22d ago

Tremors in Tech Inc as Trump rocks H-1B dream - The Economic Times

The Indian government is monitoring the impact of a new US order imposing a $100,000 H-1B visa sponsorship fee, mainly affecting Indian professionals. Existing visa holders are exempt, focusing on travelling concerns. Advocacy groups plan legal challenges. Leading US firms advised employees on potential disruptions. India's IT firms, having reduced reliance on H-1B visas with local hiring, expect minimal business impact. The Indian ministry is addressing stranded citizens' issues, amidst increased visa scrutiny.

Nvidia CEO Huang: H-1B visa changes a 'great start' but $100K fee could hurt US tech - The Economic Times

Economic Times

Economic Times · 10d ago

Nvidia CEO Huang: H-1B visa changes a 'great start' but $100K fee could hurt US tech - The Economic Times

Nvidia CEO Jensen Huang discussed the Trump administration's changes to the H-1B visa program, acknowledging the $100,000 fee as a positive start in reducing illegal immigration. However, he cautioned that the high cost might push companies to invest outside the U.S., disadvantaging startups compared to large tech firms. Huang also stressed the importance of U.S. immigration policies on global talent attraction, suggesting they might deter foreign students, impacting America's ability to retain top talent.

Tech talent ‘wapsi’ may boost India’s AI, SaaS, deep-tech - The Economic Times

Economic Times

Economic Times · 22d ago

Tech talent ‘wapsi’ may boost India’s AI, SaaS, deep-tech - The Economic Times

The proposed $100,000 H-1B visa fee by the U.S. may lead to a significant return of Indian tech talent, boosting the local AI, SaaS, and deep tech sectors. This move could result in more U.S.-based Indian professionals and graduates building careers in India, transforming the country into a hub for innovation rather than just outsourcing. This talent influx might enable India to replicate the U.S. model of combining talent density with capital to create globally competitive companies.

A $100,000 per worker H-1B visa fee tips the balance to Big Tech - The Economic Times

Economic Times

Economic Times · 20d ago

A $100,000 per worker H-1B visa fee tips the balance to Big Tech - The Economic Times

Donald Trump's new H-1B visa fee of $100,000 impacts tech firms. Selin Kocalar of Delve worries about the cost. Reed Hastings of Netflix supports the fee for high-value jobs. Startups fear they cannot compete with larger companies like OpenAI and Meta. Aizada Marat of Alma says her company may not hire through H-1B. Some worry about US competitiveness in AI.

Trump 2.0 to threaten H-1B plans of tech companies

Economic Times

Economic Times · 1y ago

Trump 2.0 to threaten H-1B plans of tech companies

The possibility of a second Trump administration has raised concerns about the anti-immigration agenda and its impact on the H-1B visa program. The proposed fee hikes for H-1B visas are causing alarm in the tech industry, with registration fees set to increase by 2,050% and application fees by 70% from 2025. There is uncertainty about the future of immigration policies under Trump, as his first administration saw an increase in H-1B visa denial rates. The fee increases will affect the cost of bringing in talent, particularly when there is already a high demand for skilled workers.

Elon Musk, Satya Nadella, Sundar Pichai, other H-1B beneficiaries silent on new rules - The Economic Times

Economic Times

Economic Times · 22d ago

Elon Musk, Satya Nadella, Sundar Pichai, other H-1B beneficiaries silent on new rules - The Economic Times

Several tech leaders, including Elon Musk, Satya Nadella, and Sundar Pichai, who've benefited from the H-1B visa system, remained silent on new U.S. rules imposing a $100,000 fee for H-1B visa petitions. The rule aims to restrict entries to highly skilled individuals, affecting many in Silicon Valley, particularly Indian tech professionals. This move by the Trump administration drew criticism, with Musk previously expressing strong opposition to changes in the H-1B policy.

As White House issues clarification, door opens for laid-off H-1B techies - The Economic Times

Economic Times

Economic Times · 21d ago

As White House issues clarification, door opens for laid-off H-1B techies - The Economic Times

Some laid-off H-1B visa holders may benefit from the new \$100,000 fee rule, as they’re exempt and could be rehired more easily. Since early 2025, nearly 145,000 tech workers have lost jobs. Experts say companies may find them attractive hires, avoiding fresh applications and saving time and cost.

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