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April 20, 2025, 3:04 p.m.
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Immigrant Entrepreneurs Drive U.S. AI Innovation Amid Restrictive Immigration Policies

Brief news summary

A study by the Institute for Progress reveals that over 60% of leading U.S. privately held AI startups were founded or co-founded by immigrants, underscoring their crucial role in driving innovation and sustaining America’s leadership in artificial intelligence. Analyzing data from the Forbes AI 2025 list, the report highlights immigrants’ substantial entrepreneurial contributions within the tech sector. However, restrictive immigration policies enacted during the Trump administration—intended to limit foreign workers including skilled AI professionals—pose challenges to this innovation. The current administration’s national AI strategy aims to maintain U.S. dominance in AI, creating tension between immigration restrictions and the necessity of attracting global talent. Experts such as Jeremy Neufeld emphasize that securing top international experts is vital to preserving technological leadership. Ongoing policy debates around visa programs like the H-1B focus on fostering innovation while protecting domestic employment. The forthcoming AI strategy seeks to address national security, economic competitiveness, and talent acquisition. Effectively resolving these immigration policy conflicts is essential to uphold U.S. leadership in AI and ensure continued technological advancement.

A recent comprehensive analysis by the Institute for Progress (IFP) highlights the vital contributions of immigrant entrepreneurs in the U. S. artificial intelligence (AI) sector. The study reveals that over 60% of leading privately held AI startups in the United States, as identified in the Forbes AI 2025 list, were founded or co-founded by immigrants. This underscores immigrant talent as essential to fostering innovation and maintaining America’s global leadership in AI and technology. Historically recognized for their entrepreneurial drive and role in advancing technology, immigrants remain a cornerstone of American innovation. However, this critical contribution contrasts sharply with the restrictive immigration policies of President Donald Trump’s administration, which emphasizes an “America First” agenda aimed at tightening immigration controls and limiting the inflow of foreign workers, including high-skilled individuals crucial to AI and tech sectors. At the same time, the administration is crafting a national AI action plan to strengthen U. S. dominance in AI development and deployment, recognizing AI as pivotal to economic growth, national security, and technological leadership. This creates a notable policy tension: while the U. S.

prioritizes maintaining its AI edge, restrictive immigration policies risk hindering the attraction and retention of top international talent, historically key to cutting-edge AI research and startups. Jeremy Neufeld, IFP’s Director of Immigration Policy and co-author of the study, stresses that welcoming global talent remains fundamental to American technological success and urges policymakers to consider the long-term impact of immigration constraints on the technology ecosystem. The debate over high-skilled immigration, particularly involving H-1B visas, remains a divisive political issue. Advocates for more open immigration argue that easing restrictions is vital to supporting innovation and filling skills gaps, whereas opponents prioritize protecting domestic employment. The upcoming national AI strategy is therefore highly anticipated by industry and policymakers, expected to address these challenges and provide a framework balancing national security, economic competitiveness, and a robust global talent pipeline. In summary, the IFP analysis presents a compelling case for the indispensable role of immigrants in U. S. AI innovation, while exposing contradictions between current immigration policies and the goal of advancing AI as a national priority. Resolving this tension will be crucial for the U. S. to sustain its leadership in technology and innovation on the global stage.


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