Why over 100 Indian AI startup founders are moving operations to the US
Around 100 Indian AI startup founders are heading to the US as demand, funding and decision-making for AI products remain stronger in the American market
 "Why over 100 Indian AI startup founders are moving operations to the US")
A growing number of Indian founders building artificial intelligence (AI) startups are packing their bags for the United States (US). While there is talk about tech talent returning to India, the reality for many AI entrepreneurs is different: the US still offers quicker access to customers, deeper funding pools and a more mature AI ecosystem, The Economic Times reported.
Investors and founders say this has led to a shift of Indian AI startups overseas.
Startups shifting base to the US
More than 100 Indian AI founders have either already relocated to the US or are making plans to do so, the news report said. Startups such as Composio, Meetstream.ai, Smallest.ai, Beatoven.ai and GetCrux have moved their headquarters to the US over the past two years. Several others are in various stages of shifting operations.
Founders and investors said the move is largely driven by business needs rather than personal preference. Many AI startups, especially those selling to large enterprises, find that their biggest customers are based in the US.
Some founders chose not to be named, pointing to uncertainty around US immigration rules under President Donald Trump’s administration, the news report said.
Why AI founders are choosing the US
As artificial intelligence becomes central to new products and services, founders say being close to customers, investors, and top talent matters more than ever. For many, the US offers all three at scale.
The news report quoted Siddharth Sivasubramanian, cofounder of Meetstream.ai, as saying that the pace of business in the US is a major attraction.
He added that the number of founders relocating is likely higher than reported. He said that he knows at least 20 to 30 founders who have moved to the US in just the last year.
Meetstream.ai builds APIs and infrastructure that power AI-based meeting agents.
Bay Area remains the main magnet
Most founders are heading to the San Francisco Bay Area, widely seen as the global hub for artificial intelligence innovation. The region hosts major tech firms, AI researchers, startup accelerators and venture capital funds.
Mansoor Rahimat Khan, cofounder of Beatoven.ai, relocated to the US in 2024. He said proximity to talent and the broader ecosystem play a crucial role.
Investors see a clear shift
Investors tracking early-stage AI companies say this trend has picked up pace over the past year. Nitin Sharma, partner at AI-focused investor Antler India, described it as an “epicentre pull", the news report said.
In Antler’s AI Residency programme, which includes 26 startups, around 40 per cent of nearly 50 founders plan to spend a large part of their time in the Bay Area after raising their first round of funding. Many of them want at least one cofounder to relocate to the US and build the business from there.
Funding and customers drive relocation
Apart from talent, money remains a strong factor. The news report quoted Mohamad Faraz, co-founder and managing partner at Upsparks Capital, as saying that US companies are more open to adopting AI solutions and are also more willing to pay for them.
He noted that the founders of five companies from his portfolio moved to San Francisco in the past year, the news report stated.
As AI continues to reshape the tech landscape, founders say they will go where growth feels fastest. For now, that path is leading many Indian startups straight to the US.