Most outsourced coders in India will be gone in 2 years due to A.I., Stability AI boss predicts
OpenAI Dall E 2 on a phone with an AI brain illustration seen on the screen behind.
Jonathan Raa | Nurphoto | Getty Images
Most outsourced programmers in India will see their jobs wiped out in the next year or two, Stability AI CEO Emad Mostaque said.
Mostaque, on a call with UBS analysts, said that most of the country’s outsourced coders will lose their jobs as the effects of AI mean that it is now possible for software to be developed with far fewer people.
“I think that it affects different types of jobs in different ways,” Mostaque said on a call with analysts at the Swiss investment bank last week.
“If you’re doing a job in front of a computer, and no one ever sees you, then it’s massively impactful, because these models are like really talented grads.”
According to Mostaque, not everyone will be affected in the same way, however.
That is due in no small part to differing rules and regulations around the world. Countries with stronger labor laws, like France, will be less likely to see such an impact, for example.
In India, Mostaque said, “outsourced coders up to level three programmers will be gone in the next year or two, whereas in France, you’ll never fire a developer.”
“So it affects different models in different countries in different ways in different sectors.”
India is home to more than 5 million software programmers, who are most under threat from the impacts of advanced AI tools like ChatGPT, according to a report from Bloomberg.
Asia’s second-largest country is a prime location for companies that outsource back-office jobs and other roles overseas. Silicon Valley tech giants, Wall Street banks, airlines and retailers are all customers to India’s outsourcing firms.
Tata Consultancy Services (TCS), an Indian multinational IT services and consulting firm, is the country’s largest outsourcing provider. Others include Infosys and Wipro.
TCS has bet big on generative AI, committing to train more than 25,000 engineers on the technology over Microsoft’s Azure Open AI service to “help clients accelerate their adoption of this powerful new technology.”
In an interview with CNBC Thursday, TCS’s CEO N. Ganapathy Subramaniam said that the company began taking a “machine-first” approach to project delivery about four years ago and it showed how AI will make an “enormous impact on the way that we operate and the way that we do things.”
Generative AI, Subramaniam said, “has just advanced it by a few years.”
Mostaque reiterated a previous statement he made saying that there will be “no more programmers” in five years’ time — however, he caveated this to say that he meant coders in the traditional sense.
“Why would you have to write code where the computer can write code better? When you deconstruct the programming thing from bug testing to unit testing to ideation, an AI can do that, just better,” Mostaque said.
“But it won’t be doing it automatically, it will be AI ‘co-pilots,'” Mostaque said. “That means less people are needed for classical programming, but then are they needed for other things? This is the question and this is the balance that we have to understand, because different areas are also affected differently.”
WATCH: A.I. will make an ‘enormous impact’ on the way we operate: Tata Consultancy Services
Jensen Huang, NVIDIA founder and CEO, has a Q&A session at a press conference during the APEC CEO summit on October 31, 2025 in Gyeongju, South Korea.
Woohae Cho | Getty Images News | Getty Images
Even Nvidia CEO Jensen Huang couldn’t save the tech and artificial intelligence trade this week.
The chip giant’s talismanic leader trumpeted “off the charts” chip sales and dismissed talk of an “AI bubble,” and for a while, the tide lifted all boats.
“There’s been a lot of talk about an AI bubble,” Huang said during an earnings call this week. “From our vantage point, we see something very different.”
The buzz from the blowout report quickly reversed, sending the AI winners deeply into the red — and few beneficiaries were left unscathed.
Every member of the Magnificent 7, except for Alphabet, was tracking for a losing week, with Nvidia, Amazon and Microsoft staring down the biggest losses.
Amazon and Microsoft have led the group’s drop lower, falling about 6% this week. Meanwhile, Alphabet has gained nearly 8%. The search giant is also the only megacap of the group on pace for November gains thanks to a boost from the launch of Gemini 3.
Oracle, which is another major Nvidia customer, slumped about 10%. The chipmaker also supplies major model developers such as OpenAI and Anthropic.
Chip stocks have also declined amid the broader tech market turmoil. Advanced Micro Devices and Micron were on pace for 17% losses. Marvell Technology has slumped about 10%. Quantum computing stocks Rigetti, IonQ and D-Wave have dropped at least 10%
CoreWeave, which buys and rents out Nvidia’s chips in data centers, initially soared on the chipmaker’s earnings report, but swiftly reversed course. The company’s stock is looking at an 8% blow this week.
AI fever was cooling in the runup to Nvidia’s earnings report on Wednesday, and investors looked to the print to alleviate fears that the AI bubble was on shaky ground. Since the launch of ChatGPT in late 2022, the stock has helped power the market to new all-time highs.
But concerns have mounted in recent weeks as tech stocks hit stretched valuations.
Major investors, including Bridgewater’s Ray Dalio told CNBC Thursday that the market is definitely in a bubble.
Much of the worries have stemmed from a boom in capital expenditures spending to support AI, with few signs of a payoff in view for many of the players.
Investor Michael Burry recently accused some of the biggest cloud and infrastructure providers of understating depreciation expenses and estimating a longer life cycle for their chips, calling it “one of the more common frauds of the modern era.”
Earlier this month, Burry revealed bets against Nvidia and Palantir.
Shares of the software analytics company, which supplies AI tools to the government and businesses, are down 11% this week. The stock has shed nearly a quarter of its value this month.
WATCH: Bridgewater founder Ray Dalio: We are definitely in a bubble, but that doesn’t mean you should sell
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