alt Hacker NewsThis is overall correct. Just a nit: openai/anthropic don't have much of an engg presence in India. But yes for all of big tech.
This is overall correct. Just a nit: openai/anthropic don't have much of an engg presence in India. But yes for all of big tech.
Both OpenAI and Anthropic have significant customer engineering: architecture, integrations, evaluations, and production deployments in India. It's kept under wraps because the current administration doesn't want their "We need to win AI" to be overshadowed by "but our money is going to India again!" concerns with voters.
The U.S. is having its midterms - it closes tomorrow - and the next two years are pivotal to who wins the senate for the next 4 years. Having it leaked that billions of dollars of domestic AI spend is going to India is going to sink the GOP.
OpenAI has large offices in Delhi, Mumbai, and Bengaluru. Anthropic is rapidly expanding their Bengaluru office to Mumbai.
India is an extremely large market - there are 4x more people in India than in the U.S, so it's a huge TAM but most of them don't read or speak English so there's a tremendous localization challenge.
India is undergoing a fundamental shift in their economy. They used to be a culture that used to save money before they spend it. Recently I saw a large group of Indian visitors by the Golden Bridge taking pictures and asked them how they could have afforded to save for the trip given the current explosion in prices.
They hadn't saved money - they had taken out loans for the trip. Everyone of them. Apparently their house help earns as much as a teacher in Nonalva, Mumbai (I might have got the city wrong but it sounded like that)
They also focus their students on STEM and are having a tech. hiring crisis (so talent is really cheap). Every engineer speaks atleast 3 different languages, including English and even more local dialects.
Adjusted for cost, the above average Indian engineer assisted by Claude is insanely more valuable than an average engineer from SF assisted by Claude. It's like DeepSeek V4.1 Flash 1017 vs your average US frontier model.
As I said in another comment, $180k/yr doesn't go very far in San Francisco specially if you want to have a family but I won't be surprised if you could retire in India after working on $180k/yr for 2-3 years.
Every market has an upper threshold of costs parties are willing to bear and San Francisco passed it where there's now active demand collapse. Companies are voting with their wallets and people in San Francisco are paying the price.