US tells Anthropic to suspend foreign access, company pauses globally
On June 12, the US government told AI startup Anthropic to suspend access to its Fable 5 and Mythos 5 models for foreign nationals, citing national security concerns.
According to the company, authorities believed there may be ways to bypass safeguards and use the models to identify software vulnerabilities.
With just 90 minutes to respond and no quick way to block only foreign users, Anthropic hit pause for everyone.
Indian IT firms urged to diversify
The sudden shutdown has left many businesses scrambling, especially those using these AIs for customer support or coding tasks.
Chandrakant Agrawal, Co-Founder and CEO of AppSquadz, pointed out that companies now need to treat AI access as a real risk.
For Indian IT firms relying on U.S.-based AI tools, this is a wake-up call to diversify and not put all their eggs in one basket.