Opendoor's exit from India sparks AI and outsourcing debate

Opendoor, the San Francisco online home-buying platform, has shut down its India operations. This happened less than two years after it expanded there. The decision has become a big topic in the debate about AI and offshore work. CEO Kaz Nejatian said the company wants to bring operational work back to the U.S. and move toward smaller AI-native teams. Opendoor has not responded to questions about its employees. It did not say how much of the decision came from AI efficiency. The news spread quickly through Silicon Valley. Founders, investors, and outsourcing experts see it as an early example of AI changing the economics of India's back-office work. India has grown a lot in this area. It now has over 2,100 Global Capability Centers. These centers employ about 2.36 million people and generate nearly $100 billion in revenue each year. Opendoor had around 250 employees in India when it set up offices in Chennai and Bengaluru in 2024. But the whole company has cut back for years. Securities filings show Opendoor ended last year with 1,042 workers globally, down from 1,470. Its non-U.S. workforce went down to 184 from 342. The U.S. housing market has caused problems for online home-buying companies. This makes the India exit harder to understand purely as an outsourcing issue. Still, the CEO's words have resonated. Investor Sheel Mohnot said AI will replace many jobs in India. Venture capitalist Keshav Lohia called the decision a "watershed moment" for AI. Phil Fersht from HFS Research said it is not just about moving jobs. AI is reducing the amount of labor companies need. He mentioned a model called "Services-as-Software." Varun Rekhi warned that AI could pressure India's export industry. Opendoor has cut jobs for years, so its story is complicated. It might say as much about its own troubles as it does about AI and offshore work.