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Opendoor’s India exit is fueling a bigger conversation about AI and outsourcing

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Opendoor, the San Francisco-based online home-buying platform, is shutting down its India operations less than two years after expanding its presence in the country. The decision has become a flashpoint in the debate over whether AI is starting to alter the economics of offshore work.

In announcing the decision on Wednesday, CEO Kaz Nejatian cited a push to bring operational work back to the U.S., where Opendoor’s customers are, and a shift toward smaller AI-native teams. The company did not respond to requests for comment on how many employees were affected or how much of the decision was driven by AI efficiency. But the announcement quickly gained traction across Silicon Valley, where founders, investors, and outsourcing experts see it as an early example of how AI is reshaping the economics that made India a global hub for back-office operations.

To understand why they care, it helps to know what’s at stake for India. It has evolved far beyond its roots as a destination for outsourced back-office work. The country is now the world’s largest Global Capability Center market — a term for dedicated offshore units multinationals set up to handle everything from IT and finance to R&D — with more than 2,100 centers employing about 2.36 million people and generating nearly $100 billion in annual revenue.

Opendoor itself had built a large team in India to handle manual workflows across fragmented systems, Nejatian said. The company had nearly 250 employees in India when it opened offices in Chennai and Bengaluru in 2024. But the entire company has been scaling back in recent years. Securities filings show Opendoor employed 1,042 people globally at the end of last year, compared with 1,470 a year earlier. Similarly, its non-U.S. workforce declined to 184 employees at the end of last year, compared with 342 employees at the end of 2024.

Those broader workforce reductions make it difficult to view the India closure solely through the lens of outsourcing. Opendoor has been cutting costs across the business after a difficult period for the U.S. housing market that hit online home-buying companies especially hard. Still, the language Nejatian used to explain the move resonated with investors and outsourcing analysts who see AI reshaping how companies organize operational work.

Some investors viewed the decision as a sign of what AI could mean for India’s vast outsourcing workforce. “As manual work gets replaced by AI, a lot of jobs will be lost in India,” wrote Sheel Mohnot, co-founder of Better Tomorrow Ventures.

Others viewed Opendoor as evidence of a larger shift in how companies are organized. Keshav Lohia, a venture capitalist at Emergent Ventures, described the decision as a “watershed moment” for AI-driven operations, arguing that advances in AI are beginning to challenge the cost-arbitrage model that made India a popular offshoring destination.

Phil Fersht, chief executive of HFS Research, an advisory firm that tracks the global outsourcing and business services industry, told TechCrunch that the development should not be viewed simply as jobs moving from India to the U.S. The more important shift, he said, is that AI is reducing the amount of operational labor companies require in the first place, allowing firms to run leaner organizations regardless of location.

“This is not an isolated restructuring,” Fersht said. “It is part of a much broader pattern we are starting to see as companies redesign operations around AI, automation, and much leaner workflows.”

Fersht argued that the winners would be companies that combine AI, software and human expertise to deliver outcomes without continually adding headcount, a model he described as “Services-as-Software.” While Opendoor may be one of the first high-profile examples, he said it is unlikely to be the last.

Some investors are already extrapolating beyond individual companies. Varun Rekhi, a venture capitalist at Speedinvest, argued that if AI reduces demand for labor-intensive services, it could eventually pressure one of India’s most important export industries, which is built around supplying talent and expertise to global corporations.

For now, Opendoor remains a complicated case study — a company that has been cutting headcount broadly for years, and whose India exit may say as much about its own struggles as it does about the future of AI and offshore work.

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Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal

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Microsoft has signed a three-year agreement to buy nearly 37,000 tons of carbon removal credits from Indian startup Alt Carbon, marking the tech giant’s first enhanced-rock weathering deal in Asia.

Under the agreement, Alt Carbon will deliver 36,920 metric tons of carbon dioxide removal credits by 2029 from its Darjeeling Revival Project in eastern India. Microsoft also has an option to purchase additional volumes if the startup meets delivery and verification milestones.

The deal follows reports that suggested Microsoft — the world’s largest buyer of carbon-removal credits — had paused parts of its carbon-removal procurement program. The company rejected those claims, saying it remained committed to its climate goals even as it refined its sustainability strategy.

The agreement is a potential boon for Alt Carbon, a Bengaluru-based startup founded in 2023 that is focused on carbon removal projects, including enhanced rock weathering. This technique involves spreading crushed basalt and other silicate rocks on farmland to speed up natural chemical reactions that help store carbon dioxide. Alt Carbon sources basalt from the Rajmahal Traps in eastern India and deploys it across farmland in West Bengal, where the rock reacts with rainwater and atmospheric carbon dioxide to form stable bicarbonates.

Discussions with Microsoft began in early 2025 and culminated more than a year later after extensive scientific review, due diligence, and contract negotiations, Alt Carbon co-founder and President Sparsh Agarwal told TechCrunch. Microsoft also required additional monitoring, reporting, and verification (MRV) measures beyond registry requirements, including expanded data-sharing and carbon quantification protocols, he said.

The deal comes as buyers increasingly look for proven carbon-removal projects in a market where verified supply remains scarce. Hundreds of startups have emerged promising to remove carbon dioxide from the atmosphere. However, only a small fraction have delivered verified credits at commercial scale.

“The problem that exists right now is that there are a lot of suppliers, but there are very few verified deliveries out there,” Agarwal said. “When companies are able to deliver, everyone wants to ensure that they get a part of the supply.”

Alt Carbon has issued nearly 10,000 carbon-removal credits through enhanced rock weathering to date, making it the world’s largest issuance of such credits, according to Agarwal. The startup expects to issue another 15,000 credits by the end of the year.

Alt Carbon operates two carbon-removal projects in North Bengal, including one dedicated to Japanese shipping giant Mitsui OSK Lines and a larger program from which Microsoft’s credits will be sourced, Agarwal said. The startup has expanded beyond tea estates into rice-growing areas and now works with more than 35,000 farmers across about 80,000 acres.

Credits under the Microsoft agreement will be issued through Isometric, a carbon-removal registry that developed an enhanced rock-weathering methodology.

The deal also reflects the growing role of emerging-market suppliers in carbon removal. Developers from the Global South now account for about 26% of carbon-removal credit issuances, up from roughly 2% in 2022, Agarwal said. He added that international buyers were often skeptical of Indian carbon projects when Alt Carbon launched over two years ago, but growing issuance volumes and stricter verification standards have helped improve confidence in the market.

The Alt Carbon agreement is not Microsoft’s first carbon-removal investment in India. In January, the company signed an agreement with another Indian startup, Varaha, to purchase more than 100,000 tonnes of carbon dioxide removal credits generated through biochar over three years.

Microsoft joins a roster of buyers of Alt Carbon’s credits that includes procurement coalitions such as Frontier, whose members include Google, Stripe and Shopify, and NextGen, backed by companies including UBS, Swiss Re, and Boston Consulting Group, according to registry data.

Agarwal said Alt Carbon plans to expand its deployment footprint roughly fivefold over the next four to five years from about 80,000 acres today, as demand for verified carbon-removal credits grows.

Alt Carbon, which last year raised $12 million in a seed funding round led by tech investor Lachy Groom, has built its own MRV infrastructure, including laboratories in Bengaluru and Darjeeling that it uses to analyze soil and water samples and quantify carbon removal. Agarwal said improving verification capabilities and lowering measurement costs will be critical to scaling enhanced rock weathering projects in India and beyond.

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DoorDash’s new AI chatbot lets you order with prompts and photos

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DoorDash announced on Thursday that it’s launching a new AI chatbot that lets users order food and groceries with text prompts and photos in its latest AI push.

The chatbot, called “Ask DoorDash,” allows users to search the app for what they’re looking for in their own words instead of having to scroll through restaurants and stores to build a cart. You can tell the chatbot what you’re in the mood for, share a recipe link to find the items, or describe the reservation you’re looking for.

“Traditional search works best when you know the exact restaurant or table you’re looking for,” DoorDash wrote in a blog post. “Ask DoorDash is designed for the moments when you don’t.”

Food delivery apps and tech giants are betting that AI can help make shopping more conversational and personalized, as companies race to make AI assistants a standard part of everyday life. In February, Uber Easts launched an AI-powered “Cart Assistant,” while Instacart has rolled out an AI shopping assistant that grocers can offer to their customers.

DoorDash’s app can build your grocery cart based on a photo from a cookbook, a picture of your grocery list, or a recipe. DoorDash will then add all the items and their correct quantities to your cart. It will prompt users to check if they already have staples like sugar and butter, so they don’t buy something they already have.

Image Credits:DoorDash

You can also ask the chatbot to reorder your last grocery cart or suggest new items based on your previous orders, DoorDash says.

As for ordering food, you can tell the chatbot that you want a “filling dinner for a family of 4.” The app will then surface restaurants alongside a personalized blurb explaining why it matches your search. You can narrow the results even further with a query like, “Show me kid-friendly vegetarian spots with mild options.”

Once you select a place, you can ask DoorDash to build a cart with suggestions based on your dietary preferences, budget, group size, or past orders.

With Ask DoorDash for Reservations, users can ask the chatbot to find a “table for two downtown for a date-night dinner around 8 PM.” The app will then surface restaurants with availability. You can refine the results further by asking for something a little more intimate.

The chatbot is rolling out on iOS in select regions for restaurant search and grocery shopping, and within DoorDash Reservations. It will reach more users across the U.S. in the coming weeks, the company says.

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India’s AI Hardware Scrutiny Puts Biometric Devices in Focus

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India’s data-protection framework is moving into phased implementation while officials turn their attention to AI-linked hardware, biometric devices, and trusted-source controls.

The post India’s AI Hardware Scrutiny Puts Biometric Devices in Focus appeared first on TechRepublic.

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