If America wants to win the AI race, sending the world’s brightest engineers packing might not be a winning strategy.
That’s the warning from Microsoft President Brad Smith, who said the Trump administration’s immigration crackdown risks driving the next generation of AI talent away from the United States.
“I think we should all be worried about sending intentionally or inadvertently or otherwise, signals that send the most talented next wave of AI software engineers to other countries rather than the United States,” Smith said in an episode of Politico’s “The Decoded Podcast” that aired on Thursday.
His comments come after the Trump administration announced last week that it was suspending Microsoft, Adobe, and several other technology companies from a federal program that sponsors foreign workers for permanent residency.
Vice President JD Vance accused Microsoft of abusing the Permanent Labor Certification, or PERM, program by laying off American employees while hiring lower-paid foreign workers.
Smith, who Business Insider reported was recently put in charge of Microsoft’s communications, pushed back against those allegations, saying the administration had presented a misleading picture of Microsoft’s hiring practices.
“What was presented as Microsoft replacing 6,000 people who lost their jobs with 9,000 foreigners was frankly completely off base,” he said.
Smith said most of the company’s visa and green card applications concerned existing employees rather than new hires, adding that Microsoft had hired 9,200 American workers in its last fiscal year.
“That was left out of the narrative,” he said.
He also rejected suggestions that Microsoft pays foreign workers less than their American counterparts, saying employees are compensated under the same system regardless of immigration status.
The American dream, on hold
The dispute comes amid growing uncertainty for skilled foreign workers in the US.
Business Insider previously reported that the Trump administration’s shifting immigration policies have prompted some international workers to explore opportunities abroad, including in countries like the UK, Germany, and Canada.
An analysis of federal data by Business Insider found that certified H-1B applications fell 10% in the first nine months of fiscal year 2026 compared with the same period a year earlier. Applications for data scientists, however, rose 22.5%, highlighting continued demand for specialized AI talent.
On the Politico podcast, Smith cited immigrants’ economic contributions as evidence of what America stands to lose.
He said that five of the six technology and science medal recipients recently honored by President Donald Trump had immigrated to the United States.
According to Smith, the companies associated with those five individuals collectively represent more than a quarter of the S&P 500’s market value.
Their contributions, he said, benefit not just technology employees but ordinary Americans whose retirement savings and pension funds are invested in those businesses.
“Think about what those five individuals have done for the well being, even the wealth and standard of living, of Americans across the country,” Smith said.
“Let’s not put that at risk.”
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