Happy Tuesday! Recent data-collection experiments by on-demand platforms have drawn attention to Indian physical AI startups. This and more in today's ETtech Morning Dispatch.Also in the letter:■ Deeptech VCs unveil funds■ Pine Labs Q4 revenue up 17%■ Yes Madam raises fundsExperts flag data spills as house-help platforms bring physical AI home Recent data-gathering pilots by on-demand service platforms Pronto and Snabbit have drawn a spotlight on India's emerging physical AI ecosystem – and put safety regulators on edge.On alert: Sources told us that the Ministry of Electronics and Information Technology (MeitY) has taken note of recent developments, especially Pronto's in-home recording pilots.Tell me more:A clutch of startups – Human Archive, Humyn Labs, Aura ML, Build AI and FPV Labs – are building egocentric data collection and processing systems.AI-powered wearables and recording rigs are exposing sharp gaps in India's existing privacy rules, according to legal experts.How's it done:Workers and professionals wear camera-equipped devices that capture tasks from a first-person viewpoint.The footage spans everyday routines like shopping and home organisation as well as specialised work such as soldering and assembly.For sale: A data-industry insider said multiple firms are already trying to sell such datasets to AI labs in the US, where physical development is far more advanced.Python in the grass: IT freshers must speak ‘AI’ to stay on par Artificial intelligence is rewiring hiring in India's technology sector. Industry experts told us that companies are cutting fresher intake, building leaner teams, and working to decouple revenue from headcount.Data decoded: The share of entry-level hiring has fallen to around 15% in 2025 from 28% in 2024.Emerging technology roles account for nearly 52% of hiring demand; they are expected to touch 60% by the end of 2026.Leading IT services firms are now maintaining stable revenues despite flat or lower headcount.According to data from staffing firms, fresher intake in the technology sector fell from around 380,000 in 2021-22 to 95,000 in 2023-24 before recovering modestly to about 120,000 openings in 2024-25.700,000 green card seekers left united in state of anxiety The Trump administration's new rule forcing most green card applicants to leave the US and apply from overseas is unsettling hundreds of thousands of people with pending family- and employment-based cases.Number-wise: Around 540,000 family-based and 170,000 employment-based green card applications are currently pending with the US Citizenship and Immigration Services (USCIS).Indians are among the biggest applicant groups, though their exact share in the current backlog is unclear.A 2022 report by US think tank Cato Institute pegged the Indian green card backlog at 719,737 the previous year – and projected a 90-year wait for it.It is still unclear whether the new rule will apply only to fresh filings or also apply retroactively.Context: US Secretary of State Marco Rubio, on a four-day visit to India until May 26, said on Sunday that the measures were India-specific but part of a global response to the US migration crisis.ET reported on May 25 that H-1B visa registrations fell 38.5% this year to their lowest in seven fiscal years, as tighter immigration rules and other factors hit demand.VCs eye deeptech fund launches to leverage RDI capital India's venture capital ecosystem is racing to launch deeptech fund launches, hoping to ride the government's Rs 1 lakh crore research, development and innovation (RDI) corpus.Who's raising:Kalaari Capital is in talks to float a Rs 500-600 crore deeptech fund, according to sources.Blue Ashva Capital is planning a Rs 300-400 crore vehicle this year, people in the know told us.Last week, Shastra VC announced a $100 million deeptech vehicle and expects to tap the RDI pool.Piper Serica also launched an Rs 800 crore fund dedicated to deeptech.Quick recap: Earlier this month, the Technology Development Board (TDB) – one of the two second-level fund managers for the RDI fund – picked 22 startups and released the first tranche of its capital. TDB expects to deploy around Rs 500-600 crore directly to startups this financial year.ET insight: Industry watchers expect a flurry of new deeptech vehicles in the coming months, largely thanks to the government push.Pine Labs' Q4FY26 revenues up 17% to Rs 700 crore, net profit at Rs 59 crore Amrish Rau, CEO, Pine LabsDigital payments processor Pine Labs has turned profitable for the first full year in 2026, with solid double-digit growth in the March quarter.Driving the news: The company closed FY26 with an operating revenue of Rs 2,710 crore and a net profit of Rs 112 crore – a sharp swing from a Rs 145 crore loss last year. March-quarter performance was buoyed by international expansion and higher merchant services revenue.Looking at the numbers: In the March quarter of FY26:Revenue: Up 17% to Rs 700 croreAdjusted Ebitda: Rs 559 croreProfit after tax (PAT): Rs 59 crore, versus a loss of Rs 29 crore a year agoInternational business:Share of revenue climbed to 15%Operations now span 22 countriesOther Top Stories By Our Reporters Yes Madam raises Rs 50 crore: Home salon and wellness platform Yes Madam has raised Rs 50 crore in its first institutional funding round from the Sanjeev Bikhchandani-led Info Edge's newly launched growth fund, B8 Fund-I.‘Upgrade grid to realise AI dream’: Applied Materials, with a global market cap of $343 billion, has called for an overhaul of India's power grid to support the country's AI ambitions – highlighting how energy, infrastructure, and utilities must move in lockstep to capture a technology now drawing of global technology investment.Global Picks We Are Reading■ The AI era is creating a bug hunting arms race (Wired)■AI guardrails stripped from Meta and Google models in minutes (FT)■ AI v The Mind: Meet the world's first artist robot (BBC)