Zoho’s Sridhar Vembu Calls for Indian Tech Independence After US AI Model Ban

By: Harsh Vardhan

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Updated on: 15-Jun-2026 06:00 PM

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The US government recently ordered Anthropic to block access to its advanced AI models, Mythos 5 and Fable 5, for all foreigners, including its own non-US employees. This decision sent shock waves worldwide, especially in India. The move sparked an online debate about the need for Indian AI models to reduce reliance on foreign technology companies.

Key Highlights

• US government banned Anthropic's Mythos 5 and Fable 5 AI models for all foreigners.
• Zoho co-founder Sridhar Vembu urges India to build technology across all layers, not just AI.
• Vembu calls for a national mission focusing on operating systems, processors, and chip fabrication.
• US ban on advanced AI models raises concerns about global tech dependence and security.

Indian Tech Leaders Urge Self-Reliance

Zoho co-founder Sridhar Vembu has been vocal about the importance of indigenous technology in India. Responding to the Anthropic ban, Vembu stated that AI is only the visible part of a much larger technology pyramid that India needs to build. He emphasized that the issue concerns sovereign technology as a whole, not just AI.

Vembu argued that India should focus on developing technology that does not require the massive investments demanded by advanced AI models. He explained, "AI is the tip of a whole pyramid of capabilities, most of it we don't have and we don't even hear about." According to Vembu, most of these capabilities are not expensive to acquire. They require time, talent, and smaller financial resources compared to AI.

He cited Japan as an example, noting that while Japanese companies may not lead in cutting-edge AI, their technologies are essential for the data centers that operate AI models. Vembu wrote, "Japanese firms we don't hear about have critical technologies that AI data centres need. Japanese play in many such critical sectors."

Calls for a National Tech Mission

Vembu urged the Indian technology sector to learn from Japan and build a comprehensive tech pyramid. He recommended a broad national effort targeting every layer of this pyramid, not just AI research and development. "We must do AI R&D but we must not lose sight of the pyramid," he added.

This is not Vembu's first call for such an initiative. In November last year, after Zoho’s messaging app Arattai gained popularity, he advocated for a 10-year "National Mission for Tech Resilience." This mission would focus on areas such as operating systems, processors, and chip fabrication facilities.

Global Impact of US AI Restrictions

The US ban on Mythos 5 and Fable 5 marks the first time a government has restricted access to highly advanced AI models. This action could have significant global consequences. Vembu previously stated that technology has become the ultimate tool for national sovereignty and security. He argued that India must develop its own technology, independent of foreign companies.

Vembu commented, "Globalisation is dead and Bharat must find her own way ahead." Reports suggest that US authorities were concerned about potential misuse of Mythos 5 and Fable 5 by China-linked groups for cyberattacks. Despite Anthropic’s safeguards, Amazon researchers reportedly managed to bypass restrictions using specific prompts.

The US National Security Agency is also believed to be planning cyber operations involving Claude Mythos, with Anthropic engineers reportedly assisting on-site. These developments highlight growing concerns over the control and security of advanced AI technologies.