New Delhi, June 15 -- The sudden withdrawal of Anthropic PBC's latest AI models, Fable 5 and Mythos 5, following a US national security order, has exposed how vulnerable Indian startups and IT firms are to decisions made overseas. The AI startups that had begun building workflows around the models were forced to abandon plans, while companies such as Tata Consultancy Services Ltd. and Infosys Ltd. lost access to the new systems despite their partnerships with Anthropic.

The episode, the first major example of AI export controls extending beyond chips, has intensified calls for India to build Sovereign AI, as most Indian AI startups operate at the application layer and remain heavily reliant on foreign models. Founders are exploring open-...