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Summary
Anthropic said the US government has issued a national security notice restricting foreign access to two of its latest AI models Claude Fable 5 and Mythos 5, without specifying the nature of the security risk.
On Friday, the US government asked Anthropic to deny access to foreign nationals to its powerful new AI models, over fears that they could turn into deadly hacking tools in the wrong hands. Because Anthropic cannot verify user nationalities, the company abruptly pulled both models offline worldwide. While Anthropic thinks the government action was based on a "misunderstanding”, stakeholders in India have raised alarm. Some believe India is missing the bus on foundational models, while others highlighted how this is the perfect example of why sovereign AI is crucial. Mint explains the risks.
Why did the US govt restrict Anthropic’s latest AI model?
Anthropic said the US government has issued a national security notice restricting foreign access to two of its latest AI models Claude Fable 5 and Mythos 5, without specifying the nature of the security risk. However, the company said that the government was concerned about how cyber-attackers could potentially misuse the technology, though the government had offered “only verbal evidence” on such risks. This risk, Anthropic said, applies to other models too, including OpenAI. However, it noted that while it supports the government’s ability to flag and block security risks, “this action does not adhere to those principles.”
Where does that leave Anthropic’s India users?
Mythos 5 and Fable 5 remain out of bounds for users, both in India and worldwide. Interestingly, even enterprises such as Tata Consultancy Services and Infosys, which have signed long-term partnerships with Anthropic to deploy the latter’s tech in sensitive industries, will not be able to use the new AI models. Just hours before the government restriction was announced, Anthropic had announced a partnership with TCS to deploy 50,000 licences of Claude across employees in 56 countries. The latest development means TCS, like others, can access only the earlier models.
Haven’t AI firms been here before too?
In March, Anthropic was removed by the US government as a contractor of foundational AI models. Reports attributed the incident to the company refusing to remove its policy guardrails that prevent its technology from being used in autonomous weapon systems, which attracted the tag of a ‘supply chain risk’. At the time, industry analysts highlighted that conflicts with governments may lead tech to be sanctioned and restricted in the future. With the current conflict, the warnings appear to have come true.
Does this qualify as a crisis for India’s IT firms and startups?
The new strictures set a precedent for more such bans in the future. Most Indian startups are building AI applications and secondary models that are based on foundational ones from the US, EU and other countries. If India’s access to such global models is restricted, applications will fail to run. The same applies to IT services companies such as TCS, Infosys, Wipro and HCLTec,h which are betting big on OpenAI, Anthropic, Google and others to grab billion-dollar AI deals in the coming months. These restrictions may hurt their ability to win business at scale.
How far is India from its claim of building sovereign AI?
Sarvam is the sole foundational model so far worth noting. However, it has not proven itself at the kind of scale that global firms require for general-purpose AI uses. Enterprises in India trust Big Tech because the latter deeply covers policies that take into account issues such as user biases and policy infringements. India's tech startups have not proven themselves on a global stage on how predictable their tech policies are, which helps Big Tech retain its dominance over India. Experts such as Kashyap Kompella say the world is heading towards an AI export control war. While sovereign capabilities will be key, India’s foundational technologies are not mature enough to replace Big Tech. The India AI Mission, in three years, has made limited progress to date.
Where does that leave Anthropic’s India users?
Mythos 5 and Fable 5 remain out of bounds for users, both in India and worldwide. Interestingly, even enterprises such as Tata Consultancy Services and Infosys, which have signed long-term partnerships with Anthropic to deploy the latter’s tech in sensitive industries, will not be able to use the new AI models. Just hours before the government restriction was announced, Anthropic had announced a partnership with TCS to deploy 50,000 licences of Claude across employees in 56 countries. The latest development means TCS, like others, can access only the earlier models.
Haven’t AI firms been here before too?
In March, Anthropic was removed by the US government as a contractor of foundational AI models. Reports attributed the incident to the company refusing to remove its policy guardrails that prevent its technology from being used in autonomous weapon systems, which attracted the tag of a ‘supply chain risk’. At the time, industry analysts highlighted that conflicts with governments may lead tech to be sanctioned and restricted in the future. With the current conflict, the warnings appear to have come true.
Does this qualify as a crisis for India’s IT firms and startups?
The new strictures set a precedent for more such bans in the future. Most Indian startups are building AI applications and secondary models that are based on foundational ones from the US, EU and other countries. If India’s access to such global models is restricted, applications will fail to run. The same applies to IT services companies such as TCS, Infosys, Wipro and HCLTec,h which are betting big on OpenAI, Anthropic, Google and others to grab billion-dollar AI deals in the coming months. These restrictions may hurt their ability to win business at scale.
How far is India from its claim of building sovereign AI?
Sarvam is the sole foundational model so far worth noting. However, it has not proven itself at the kind of scale that global firms require for general-purpose AI uses. Enterprises in India trust Big Tech because the latter deeply covers policies that take into account issues such as user biases and policy infringements. India's tech startups have not proven themselves on a global stage on how predictable their tech policies are, which helps Big Tech retain its dominance over India. Experts such as Kashyap Kompella say the world is heading towards an AI export control war. While sovereign capabilities will be key, India’s foundational technologies are not mature enough to replace Big Tech. The India AI Mission, in three years, has made limited progress to date.
About the Author
Shouvik Das
Shouvik has been tracking the rise and shifts of India’s technology ecosystem for over a decade, across print, broadcast and web-first platforms. He's been a tinkerer of machines and PCs since childhood, a habit he was thrilled to convert into his profession. This has led him to fascinating experiences of technologies around the world, which is what keeps him hooked to his job.<br><br>Shouvik likes to believe that he is one of the few technology journalists in India who can also code. He has also been writing about the rise of AI well before it became a household name, and has met some of the most fascinating people over the years through his work.<br><br>Shouvik writes about AI, Big Tech, data centres, electronics, semiconductors, cybersecurity, gaming, cryptocurrencies, and consumer technologies. He is most fond of the stories he has written during his time here at Mint, for which he also writes 'Transformer', a weekly technology newsletter, and hosts 'Techcetra', a weekly technology podcast.<br><br>Outside of work, Shouvik spends most of his time with Pixel, whom he believes is the world's best dog. He is also an avid reader, a toy collector, a gamer and a frequent traveller.
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