The US Commerce Department has lifted export controls on Anthropic's advanced Claude Fable 5 and Mythos 5 models after a two-week global ban.
The restriction was originally triggered by national security fears after a corporate partner discovered a "jailbreak" vulnerability in the software.
The abrupt ban highlights the severe operational and sovereign risk Indian IT firms and startups face by building core infrastructure on US-regulated proprietary APIs.
The regulatory volatility massively shifts leverage toward open-source models, as deploying AI on localized Indian data centres bypasses US export controls.
The execution risk for Indian companies pivoting away from closed models is the high capital expenditure required to host open-source AI and the current performance gap at the frontier edge.
Read the full story on StartupFox