The US is restricting foreign access to advanced AI models like Anthropic’s Fable 5, treating AI as a strategic asset. This policy shift, moving control from chips to AI itself, creates new risks for global talent and lacks clear guidelines. It signals an end to frictionless access, urging countries like India to pursue sovereign AI. Indian startups face disruption, while IT firms find new opportunities in a fragmented landscape. India must focus on strategic autonomy for critical sectors, leveraging accessible AI architectures, computing power, local data, and talent to build its own robust AI ecosystem.