Over 100 Indian AI startup founders are reportedly moving or preparing to move to the United States, driven by the allure of greater access to customers, capital, and advanced AI ecosystems. This migration occurs despite discussions about a potential reverse brain drain.
Several startups have already made the move to the U.S. in recent years, including Composio, Meetstream.ai, Smallest.ai, Beatoven.ai, and GetCrux. Many others are currently in the process of relocating, according to investors and founders. This trend reflects a growing sentiment among Indian AI entrepreneurs who see the U.S. as a more fertile ground for growth and expansion.
The U.S. offers a significantly larger software market and greater availability of venture capital, enabling startups to expand internationally soon after securing early funding rounds. Nexus Venture Partners, an early Indian VC firm, is actively encouraging its portfolio companies to establish U.S. operations early to be closer to customers. Nexus has invested in over 10 companies this year, including Metaforms, Cognida AI, and Neysa, focusing on both infrastructure and application layers of AI.
A report by Dreem, an AI-powered immigration platform, indicates that Indians constitute the largest group of immigrant founders in the top 100 privately held AI startups in the U.S. As of July 1, 2025, 23 founders of Indian origin were identified as key players in the U.S. AI startup ecosystem, which is largely driven by immigrant-led innovation. Dreem's analysis reveals that 62 of the top 100 AI startups in the U.S. were founded by at least one immigrant, having collectively raised $167 billion, which accounts for 71% of the total funding analyzed. In comparison, companies founded solely by U.S.-born entrepreneurs raised $68.1 billion. Major players like OpenAI, Anthropic, Databricks, xAI, and Waymo were founded by immigrants. Following India, Israel has the next highest number of founders with 14, and China with 9.
California remains a hub for AI activity, hosting 66% of the top startups, with San Francisco alone accounting for 26%. New York follows with 15%, and Texas with 4%.
Despite the advantages, immigrant founders encounter challenges in the U.S., including visa caps, extended processing times, and outdated quotas. According to Dmitri Litvinov, CEO and Co-Founder of Dreem, these obstacles could lead to the U.S. losing talent to other countries if not addressed through reforms.
While some experts highlight the advantages Indian companies retain, such as cost-effective talent and strong customer support, they also caution that global players are likely to dominate India's consumer AI market.
