On Tuesday, investor Kevin O'Leary warned that President Donald Trump's new $100,000 H-1B visa fee could drive top talent abroad and stifle the creation of the next generation of American startups.
O'Leary Warns Of An Innovation Exodus
In a post on X, O'Leary said companies like Apple Inc. (NASDAQ:AAPL), Oracle Corp (NYSE:ORCL) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google — all of which started in garages — might never have taken off under today's immigration rules.
He argued that Trump's new H-1B policy risks forcing promising entrepreneurs to launch businesses in other countries.
"I think what this does is hurt innovation long-term," the “Shark Tank” star wrote, adding that the U.S. should not spend resources training top foreign students only to "kick them out."
He suggested that graduates of schools like MIT and Harvard should automatically be allowed to stay in the country, marry and build companies. "Why train them and kick them out?" O'Leary asked.
Trump Administration Defends The Policy
The Trump administration announced Friday that companies would now be charged $100,000 for each H-1B visa petition, a sharp increase from current fees.
Press Secretary Karoline Leavitt later clarified that the charge is a one-time filing fee for new applicants, not an annual tax. Renewals and existing visa holders will not be affected.
Administration officials say the move will prioritize American workers and reduce reliance on immigrant labor. They also announced a new $1 million "gold card" residency program for wealthy investors.
Mixed Reaction From Business And Academia
Andrew Ng, co-founder of Google Brain, said the policy is causing anxiety among skilled immigrants. "America should be working to attract more skilled talent, not create uncertainty that turns them away," he wrote.
Economist Paul Krugman also criticized the decision in his newsletter, calling it "a disastrous move" that could turn America's cycle of innovation into "a vicious circle of decline."
But not all tech voices agree. Netflix Inc. (NASDAQ:NFLX) co-founder Reed Hastings supported the policy, saying higher costs would ensure H-1B visas go to the highest-value jobs, removing the need for a lottery system.
In August, Commerce Secretary Howard Lutnick labeled it a "scam" that displaces American workers, while lawmakers like Rep. Marjorie Taylor Greene (R-Ga.) and Vice President JD Vance echoed calls to scale back reliance on foreign labor.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
