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Trump’s $100,000 H-1B fee could choke off startups’ access to AI talent and widen Big Tech’s dominance
Yahoo Finance· 2025-09-22 16:20
Core Viewpoint - The Trump administration's introduction of a $100,000 H-1B visa fee poses significant challenges for U.S. startups, potentially hindering innovation and concentrating talent within larger tech firms [1][2]. Impact on Startups - The new fee is expected to make it particularly difficult for startups to hire elite engineers, which could slow down innovation and experimentation in the tech sector [2]. - Startups may struggle to absorb the additional costs associated with the new visa fee, while larger tech companies are more likely to manage these expenses without significant impact [5][6]. Talent Concentration and Ecosystem Effects - The fee risks concentrating top talent within Big Tech firms, which can afford the new costs, while pushing skilled workers overseas, thereby weakening the U.S. AI ecosystem and reducing diversity in research and development [2][4]. - The competition for tech talent, especially in AI, is already intense, with major companies offering substantial salaries, making it harder for startups to attract and retain skilled employees [4]. Usage of H-1B Visas - Leading AI firms such as Microsoft, Google, and Meta are among the top users of H-1B visas, with nearly half of all H-1B visas in 2025 allocated to the professional, scientific, and technical services industry [3]. - Securing H-1B visas is crucial for startups, as research indicates that higher rates of H-1B visa usage correlate with increased likelihood of securing venture capital funding, generating patents, and achieving IPOs or acquisitions [6].