How Trump's $100K H-1B Visa Fee Is Fueling a European AI Talent Boom

President Trump signed an executive order introducing a new $100,000 application fee for H-1B visas.

The H-1B Visa Shockwave

Last Friday, President Donald Trump announced a bombshell change for the H-1B visa program—a $100,000 application fee. The surprise executive order sparked chaos and panic as tech giants like Microsoft and Meta asked employees traveling abroad to return to the country within 24 hours. While U.S. companies lament this unexpected cost, European tech outfits have a different message: Come work for us instead.

Europe's Unexpected Advantage

Stringent immigration policies and the threat of detention had already made the U.S. less appealing for skilled foreign talent. But the new fees are another boon for startups in hubs like London and Paris, which have long faced talent drain to Silicon Valley. For resource-strapped American startups, the $100,000 fee could mean ceding an edge to competitors across the Atlantic.

"To a lot of people in Europe, it's like a blessing in disguise," said Victor Riparbelli, CEO of London-based Synthesia. "I think it'll end up becoming a net negative for the U.S." He added that Europe could always use more skilled labor, especially for senior roles like vice presidents and directors.

The AI Talent Wars Intensify

The new fees come as the talent wars in AI reach new heights. Meta CEO Mark Zuckerberg spent billions to stockpile researchers, offering massive salaries. Meanwhile, Trump has made immigration a focal point, targeting the H-1B program to push companies to hire stateside talent.

The H-1B visa program, created in 1990, offers 65,000 visas annually for bachelor's degree holders, plus 20,000 for master's degrees or higher. Requests surged 150% between January and September 2025, but critics like Commerce Secretary Howard Lutnik call it the "most abused visa."

Shifting Perceptions of the U.S.

The new fees could further deter European talent, but perceptions had already been shifting. "The image of the U.S. as El Dorado is taking a hit," said Vassili le Moigne, CEO of Prague-based InTouch, citing Trump's "bully" image and "unwelcoming" policies. "We almost say thank you to Trump, in a way. He's really helping us keep our talent."

Impact on American Startups

For early-stage U.S. startups that can't afford the fee and rely on equity, the change means more trouble. Y Combinator CEO Garry Tan said the fee "kneecaps startups" and is a "massive gift to every overseas tech hub." However, cash-flush AI companies may not feel the pinch, as they're already splurging on talent.

Jesse Zhang, CEO of AI startup Decagon, said the fee makes it harder to justify new H-1B hires but won't affect existing recruits. His company is opening a London office to tap local talent pools.

Immigration Challenges Deepen

Immigration has always been challenging for tech workers, with denial rates and requests for evidence rising under Trump. "Traditionally we'd get straight approval, but now we're getting blanket RFEs, which delay the process," said immigration attorney Emma Zhang.

Xiao Wang, CEO of Boundless Immigration, called the fee a "human tariff," similar to Trump's import taxes. The administration also proposed a weighted lottery favoring highly-skilled, highly-paid employees, which could deter students from U.S. higher education.

Global Responses and Salary Implications

Countries like Canada and China are lowering requirements or creating new visas to recruit talent. "Other countries are going to step into this void," Wang said.

In Europe, where salaries are lower (e.g., $57k-$75k for mid-level engineers vs. $110k-$134k in the U.S.), a larger talent pool could drive wages up. "It's just simple supply and demand," said Charlotte Bax, CEO of London's Captur AI, who is doubling down on campus recruiting to attract young talent.