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Dr. Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing startup Tempus, health-care tech company Aetion Inc. and biotech company Illumina. He is also a partner at the venture capital firm New Enterprise Associates.

Researchers at Harvard presented a study demonstrating an achievement that would challenge any medical student. ChatGPT, a large language model, passed the U.S. Medical Licensing Exam, outperforming about 10 percent of medical students who fail the test annually.

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The inevitable question isn’t so much if but when these artificial intelligence devices can step into the shoes of doctors. For some tasks, this medical future is sooner than we think.

To grasp the potential of these tools to revolutionize the practice of medicine, it pays to start with a taxonomy of the different technologies and how they’re being used in medical care.

The AI tools being applied to health care can generally be divided into two main categories. The first is machine learning, which uses algorithms to enable computers to learn patterns from data and make predictions. These algorithms can be trained on a variety of data types, including images.

The second category encompasses natural language processing, which is designed to understand and generate human language. These tools enable a computer to transform human language and unstructured text into machine-readable, organized data. They learn from a multitude of human trial-and-error decisions and emulate a person’s responses.

A key difference between the two approaches resides in their functionality. While machine learning models can be trained to perform specific tasks, large language models can understand and generate text, making them especially useful for replicating interactions with providers.

In medicine, the use of these technologies is generally following one of four different paths. The first encompass large language models that are applied to administrative functions such as processing medical claims or creating and analyzing medical records. Amazon’s HealthScribe is a programmable interface that transcribes conversations between doctors and patients and can extract medical information, allowing providers to create structured records of encounters.

The second bucket involves the use of supervised machine learning to enhance the interpretation of clinical data. Specialties such as radiology, pathology and cardiology are already using AI for image analysis, to read MRIs, evaluate pathology slides or interpret electrocardiograms. In fact, up to 30% of radiology practices have already adopted AI tools. So have other specialties. Google Brain AI has developed software that analyzes images from the back of the eye to diagnose diabetic macular edema and diabetic retinopathy, two common causes of blindness.

Since these tools offer diagnoses and can directly affect patient care, the FDA often categorizes them as medical devices, subjecting them to regulation to verify their accuracy. However, the fact that these tools are trained on closed data sets, where the findings in data or imaging have been rigorously confirmed, gives the FDA increased confidence when assessing these devices’ integrity.

The third broad category comprises AI tools that rely on large language models that extract clinical information from patient-specific data, interpreting it to prompt providers with diagnoses or treatments to consider. Generally known as clinical decision support software, it evokes a picture of an brainy assistant designed to aid, not to supplant, a doctor’s judgment. IBM’s “Watson for Oncology” uses AI to help oncologists make more informed decisions about cancer treatments, while Google Health is developing DeepMind Health to create similar tools.

As long as the doctor remains involved and exercises independent judgment, the FDA doesn’t always regulate this kind of tool. The FDA focuses more on whether it’s meant to make a definitive clinical decision, as opposed to providing information to help doctors with their assessments.

The fourth and final grouping represents the holy grail for AI: large language models that operate fully automated, parsing the entirety of a patient’s medical record to diagnose conditions and prescribe treatments directly to the patient, without a physician in the loop.

Right now, there are only a few clinical language models, and even the largest ones possess a relatively small number of parameters. However, the strength of the models and the datasets available for their training might not be the most significant obstacles to these fully autonomous systems. The biggest hurdle may well be establishing a suitable regulatory path. Regulators are hesitant, fearing that the models are prone to errors and that the clinical data sets on which they’re trained contain wrong decisions, leading AI models to replicate these medical mistakes.

Overcoming the hurdles in bringing these fully autonomous systems to patient care holds significant promise, not only for improving outcomes but also for addressing financial challenges.

Health care is often cited as a field burdened by Baumol’s theory of cost disease, an economic theory, developed by economist William J. Baumol, that explains why costs in labor-intensive industries tend to rise more rapidly than in other sectors. In fields such as medicine, it’s less likely that technological inputs will provide major offsets to labor costs, as each patient encounter still requires the intervention of a provider. In sectors such as medicine, the labor itself is the product.

To compensate for these challenges, medicine has incorporated more non-physician providers to lower costs. However, this strategy reduces but doesn’t eliminate the central economic dilemma. When the technology becomes the doctor, however, it can be a cure for Baumol’s cost disease.

As the quality and scope of clinical data available for training these large language models continue to grow, so will their capabilities. Even if the current stage of development isn’t quite ready to completely remove doctors from the decision-making loop, these tools will increasingly enhance the productivity of providers and, in many cases, begin to substitute for them.

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India is betting $18 billion to build a chip powerhouse. Here’s what it means

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India is betting  billion to build a chip powerhouse. Here’s what it means

A robotic machine manufactures a semiconductor chip at a stall to show investors during The Advantage Assam 2.0 Investment Summit in Guwahati, India, on Feb. 25, 2025.

Nurphoto | Nurphoto | Getty Images

India wants to become a global chip major, but the odds are steep: competition is fierce, and India is a late entrant in the race to make the most advanced chips.

In 2022, when the U.S. restricted exports of its advanced AI chips to China to curb Beijing’s access to cutting-edge technology, a global race for semiconductor self-reliance began.

For India, it offered an opportunity: the country wants to reduce dependence on imports, secure chips for strategic sectors, and capture a bigger share of the global electronics market shifting away from China.

India is one of the world’s largest consumers of electronics, but it has no local chip industry and plays a minimal role in the global supply chain. New Delhi’s “Semiconductor Mission” aims to change that.

The ambition is bold. It wants to create a full supply chain — from design to fabrication, testing and packaging — on Indian soil.

As of this month, the country has approved 10 semiconductor projects with total investment of 1.6 trillion rupees ($18.2 billion). These include two semiconductor fabrication plants, and multiple testing and packing factories.

India also has a pool of engineering talent that is already employed by global chip design companies.

Yet progress so far has been uneven, and neither the investments nor talent pool is enough to make India’s chip ambitions a reality, say experts.

“India needs more than a few fabs or ATP facilities (i.e., more than a few “shiny objects.”) It needs a dynamic and deep and long-term ecosystem,” said Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation, a science and technology policy think tank.

Ezell says that leading semiconductor manufacturers consider “as many as 500 discrete factors” before they set up multi-billion-dollar fab investments. These include talent, tax, trade, technology policies, labor rates and laws and customs policies — all areas where India has work to do.

New Delhi’s policy push

In May, the Indian government added a new element to its chip ambition: a scheme to support electronic component manufacturing, addressing a critical bottleneck.

Until now, chipmakers had no local demand for their product as there are hardly any electronic component manufacturing companies, such as phone camera companies, in India.

Researchers inside the semiconductor fabrication lab at the Centre for Nano Science and Engineering, at the Indian Institute of Science, in Bangalore.

Manjunath Kiran | Afp | Getty Images

But the new policy offers financial support to companies producing active and passive electronic components, creating a potential domestic buyer-supplier base that chip manufacturers can plug into.

In 2022, the country also pivoted from its strategy of providing superior incentives to fabrication units making chips of 28nm or less. When it comes to chips, the smaller the size, the higher the performance with improved energy efficiency. These chips can be used in new technologies like advanced AI and quantum computing by packing more transistors into the same space.

But this approach wasn’t helping India develop its nascent semiconductor industry, so New Delhi now covers 50% of the project costs of all fabrication units, regardless of chip size, and of chip testing and packing units.

Fab companies from Taiwan and the U.K., and semiconductor packaging companies from the U.S. and South Korea have all shown interest in aiding India’s semiconductor ambitions.

“The Indian government has doled out generous incentives to attract semiconductor manufacturers to India,” said Ezell, but he stressed that “those sorts of investments aren’t sustainable forever.”

The long road

The biggest chip project in India currently is the 910-billion-rupee ($11 billion) semiconductor fabrication plant being built in Prime Minister Narendra Modi’s home state of Gujarat by Tata Electronics, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp.

The unit will make chips for power management integrated circuits, display drivers, microcontrollers and high-performance computing logic, Tata Electronics said, which can be used in AI, automotive, computing and data storage industries.

The U.K.’s Clas-SiC Wafer Fab has also tied up with India’s SiCSem to set up the country’s first commercial compound fab in the eastern state of Odisha.

These compound semiconductors can be used in missiles, defence equipment, electric vehicles, consumer appliances and solar power inverters, according to a government press release.

“The coming 3-4 years is pivotal for advancing India’s semiconductor goals,” said Sujay Shetty, managing director of semiconductor at PwC India.

Establishing operational silicon fabrication facilities and overcoming technical and infrastructural hurdles that extend beyond incentives will be a key milestone, according to Shetty.

Opportunities beyond fab

NEW DELHI, INDIA – MAY 14: Union Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw briefing the media on Cabinet decisions at National Media Centre on May 14, 2025 in New Delhi, India.

Hindustan Times | Hindustan Times | Getty Images

Last week, Indian minister Ashwini Vaishnaw, who was in Bengaluru to inaugurate a new office of semiconductor design firm ARM, said the British company will design the “most advanced chips used in AI servers, drones, mobile phone chips of 2 nm” from the south Indian city.

But experts say the role of local talent is likely to be limited to non-core design testing and validation, as the core intellectual property for chip designs is often held in locations like the U.S. or Singapore, where established IP regimes support such activities.

“India has sufficient talent in design space, because unlike semiconductor manufacturing and testing that has come up in the last 2 years, design has been there since 1990s,” said Jayanth BR, a recruiter with over 15 years of experience in hiring for global semiconductor companies in India.

He said global companies usually outsource “block-level” design validation work to India.

Going beyond this is something India’s government will need to solve if it wants to fulfil its semiconductor ambitions.

“India may consider updating its IP laws to address new forms of IP, like digital content and software. Of course, improving enforcement mechanisms will go a long way in protecting IP rights,” says Sajai Singh, a partner at Mumbai-based JSA Advocates & Solicitors.

“Our competition is with countries like the U.S., Europe, and Taiwan, which not only have strong IP laws, but also a more established ecosystem for chip design.”

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‘We need the smartest people’: Nvidia, OpenAI CEOs react to Trump’s H-1B visa fee

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'We need the smartest people': Nvidia, OpenAI CEOs react to Trump's H-1B visa fee

Nvidia CEO Jensen Huang attends the “Winning the AI Race” Summit in Washington D.C., U.S., July 23, 2025.

Kent Nishimura | Reuters

Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman on Monday commented on President Donald Trump’s decision to increase the cost of hiring overseas workers on visas.

Trump on Friday announced that he would raise the fee for an H-1B visa to $100,000, leaving companies scrambling. Employers now must have documentation of the payment prior to filing an H-1B petition on behalf of a worker. Applicants will have their petitions restricted for 12 months until the payment is made, according to the White House.

Huang and Altman responded to the changes in an interview with CNBC’s Jon Fortt, where the two executives announced that Nvidia will invest $100 billion in OpenAI as the artificial intelligence lab sets out to build hundreds of billions of dollars-worth of data centers based around the chipmaker’s AI processors.

“We want all the brightest minds to come to the U.S. and remember immigration is the foundation of the American Dream,” Huang said Monday. “We represent the American Dream. And so I think immigration is really important to our company and is really important to our nation’s future, and I’m glad to see President Trump making the moves he’s making.”

OpenAI CEO Sam Altman also expressed a positive outlook on Trump’s changes.

“We need to get the smartest people in the country, and streamlining that process and also sort of outlining financial incentives seems good to me,” Altman said.

The new $100,000 fee would be a seismic shift for U.S. technology and finance sectors, which rely on the H-1B program for highly skilled immigrants, particularly from India and China. Those two countries accounted for 71% and 11.7% of visa holders last year, respectively.

Those who already have H-1B visas and are located outside the U.S. will not be required to pay the fee in order to re-enter. Many employers use H-1B workers to fill the gaps in these highly technical roles that are not found within the American labor supply. 

— CNBC tech reporter Annie Palmer contributed to this report.

WATCH: Watch CNBC’s full interview with Nvidia CEO Jensen Huang and OpenAI leaders Sam Altman and Greg Brockman

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Here’s everything Trump is changing with H-1B visas

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Here's everything Trump is changing with H-1B visas

President Donald Trump speaks before signing executive orders in the Oval Office at the White House on September 19, 2025 in Washington, DC.

Andrew Harnik | Getty Images

President Donald Trump raised the fee for an H-1B visa to $100,000 on Friday, leaving companies scrambling to respond.

With many left wondering whether their careers will remain in tact, here’s a breakdown of the new H-1B fees:

What did Trump change?

As of Sunday, H-1B visa applications will require a $100,000 payment. Previously, visa fees ranged from $2,000 to $5,000 per application, depending on the size of the company.

Employers now must have documentation of the payment prior to filing an H-1B petition on behalf of a worker. Applicants will have their petitions restricted for 12 months until the payment is made, according to the White House.

Who does this impact?

The fee will only be applied to new H-1B applicants, not renewals or current visa holders, according to White House press secretary Karoline Leavitt. The fee will be implemented in the upcoming lottery cycle.

Those who already have H-1B visas and are located outside the U.S. will not be required to pay the fee in order to re-enter.

Leavitt also clarified that the $100,000 is a one-time payment and not an annual charge.

Exceptions can be made to any immigrant whose employment is deemed essential in the national interest by the Secretary of Homeland Security and does not pose a threat to the security or welfare of the U.S.

Employees with B visas who have start dates prior to October 2026 will also receive additional guidance in order to prevent using those temporary business visas as a workaround for H-1B visas.

Who are these workers and why are they needed?

H-1B visas allows highly skilled foreign professionals to work in specialty occupations that generally require at least a bachelor’s degree to fulfill the role. Jobs in the fields of science, technology, engineering and math, or STEM, usually qualify.

Many employers use H-1B workers to fill the gaps in these highly technical roles that are not found within the American labor supply.

Companies in the tech and finance sectors rely heavily on these specially-skilled immigrants, particularly from India and China, which accounted for 71% and 11.7% of visa holders last year, respectively.

How many H-1B visas does the tech industry use every year?

The current annual cap for H-1B visas is 65,000, along with an additional 20,000 visas for foreign professionals with a master’s degree or doctorate from a U.S. institution. A lottery system is used to select additional petitions if demand exceeds the cap.

Since 2012, about 60% or more of approved H-1B workers had computer-related jobs, according to Pew Research.

Amazon was the top employer for H-1B holders in the fiscal year 2025, sponsoring over 10,000 applicants by the end of June, according to U.S. Citizenship and Immigration Services. Microsoft and Meta had over 5,000 each, while Apple and Google rounded out the top six with over 4,000 approvals.

WATCH: CoreWeave CEO on H-1B visas: Additional fee is ‘sand in the gears’ for access to talent

CoreWeave CEO on H-1B visas: Additional fee is 'sand in the gears' for access to talent

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