Our Bureau
Mumbai
Several Indian AI startups relocating to the US are encountering significant visa challenges, complicating their efforts to secure a foothold in the global AI hub. The stricter visa regulations introduced under the Trump administration have resulted in extended wait times and increased denial rates, hindering timely access for business-critical travel and operations.
Aravind Jayendran, cofounder of AI startup LatentForce, emphasized the necessity of being physically present in the US for client meetings within the coming months but noted that securing a B1/B2 visa is increasingly difficult, with appointment wait times in India stretching from three-and-a-half to nine months. Siddhant Mohan, founder of Qodex, cited rising rejection rates for the O-1 visa, a category reserved for individuals with extraordinary abilities, which many Indian startup founders now seek due to frequent US stays.
The US remains the largest market and venture capital hub for AI startups, prompting multiple Indian founders from firms like Composio, Smallest.ai, and Atomicwork to relocate to be closer to their customer base and talent pool. Investors and founders alike stress the importance of physical presence, citing the necessity of in-person meetings to close deals—a limitation that virtual engagement cannot fully overcome.
With the Trump administration raising wage criteria and tightening rules, some startups are recalibrating hiring strategies, increasingly preferring to recruit local US talent for business roles while hiring engineers in India to navigate visa complexities. The potential elimination of the Optional Practical Training (OPT) program, which allowed international students to work in the US post-graduation, further complicates the talent pipeline for these startups.
Overall, the tightened US immigration policies present a crucial obstacle for Indian AI startups seeking to scale in the world’s leading AI ecosystem, impacting their operational plans and growth strategies. This visa squeeze threatens to slow their integration into the competitive US market despite the sector’s rapid expansion.
