The recent H-1B visa fee increase, set to take effect in April 2024, is raising concerns about its potential impact on the AI industry and tech startups in the United States. The fee hike, which will see costs rise from $460 to $780 for basic registration and additional fees reaching up to $45,000 for some employers, could significantly affect companies’ ability to hire international AI talent. Industry experts and startup founders argue that this increase could hamper innovation in artificial intelligence, particularly affecting smaller companies and startups that are already operating on tight budgets. The timing is particularly challenging as the demand for AI talent continues to grow exponentially, with companies competing globally for skilled workers in machine learning, data science, and AI development. Critics of the fee increase point out that it could push AI companies to establish operations in other countries with more favorable immigration policies, potentially weakening America’s competitive edge in AI development. The policy change comes at a critical time when the U.S. is trying to maintain its leadership in AI technology while competing with other nations, particularly China. Some industry leaders suggest that this could lead to a “brain drain” in the AI sector, with talented researchers and developers choosing to work in countries with more accessible visa processes and lower costs.
Source: https://www.businessinsider.com/h1b-visa-fee-trump-ai-industry-startups-2025-9