Artificial Intelligence (AI) Breakthrough

[27th June 2025] The Hindu Op-ed: Fathoming America’s plan to manage AI proliferation

PYQ Relevance:

[UPSC 2021] The USA is facing an existential threat in the form of a China, that is much more challenging than the erstwhile Soviet Union.” Explain.

Linkage: The article explicitly state that the US views AI technology control as a means to “preserve its lead” against adversaries like China and Russia, seeing advanced AI capabilities as a determinant of national power, similar to nuclear weapons.

 

Mentor’s Comment:  The United States’ decision to withdraw the AI Diffusion Framework marks a clear change in policy, but not in its overall strategy to control AI technology. The framework had treated AI like a nuclear threat, aiming to tightly control the export of AI chips, especially to China and Russia. Its removal is seen as positive news, especially for countries like India, which were not treated fairly. However, the U.S. is now trying to achieve the same goals through technology-based controls instead of direct trade rules. This shift from open policy to hidden enforcement could hurt global AI cooperation, cause strategic caution among allies, and lead to repeating the same problems in a new way.p

Today’s editorial talks about the impact of the United States’ recent decision to cancel its AI Diffusion Framework. This topic is useful for GS Paper II (International Relations) in the UPSC mains exam.

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Let’s learn!

Why in the News?

The United States recently cancelled its AI Diffusion Framework, a set of rules that controlled the export of AI technology. This decision is being seen as a positive move.

What is the AI Diffusion Framework?

The AI Diffusion Framework was a set of export control rules announced by the United States in early 2025. It aimed to regulate how advanced AI technology, such as AI chips and model weights, could be shared or sold to other countries.

What were the key goals of the U.S. AI Diffusion Framework?

  • Restrict Access to Strategic Competitors: The framework aimed to block countries like China and Russia from obtaining advanced AI chips and model weightsto prevent them from enhancing their military and surveillance capabilities through powerful AI systems.
  • Preserve U.S. Technological Leadership: By limiting the global spread of high-performance computing resources, the U.S. sought to maintain its edge in AI development and ensure that cutting-edge innovations remained concentrated within the U.S. and trusted allies.
  • Create a Structured Export Control System: It introduced a clear set of rules combining export controls and licensing, aiming to simplify regulatory procedures and standardize how AI-related technology was shared or restricted across countries.

Why was the U.S. AI Diffusion Framework seen as counterproductive?

  • Damaged trust among allies and partners: The broad restrictions impacted both rivals and friendly countries, causing diplomatic friction. Some nations that were not classified as preferred allies began investing in independent AI ecosystems to avoid overdependence on the U.S.
  • Accelerated innovation in restricted regions: By limiting access to advanced AI chips, the framework pushed affected countries to create more efficient algorithms that required less computing power. This led to the development of competitive AI models that challenged the dominance of those built with high-end hardware.

Why is the framework’s withdrawal seen as beneficial for countries like India?

  • Improved Access to AI Hardware and Resources: With the framework withdrawn, countries like India now face fewer barriers in acquiring high-performance AI chips and related technologies. Eg: Indian startups and research institutions can more easily procure advanced GPUs necessary for developing large AI models.
  • Support for Strategic and Technological Autonomy: The removal of restrictions allows India to pursue its own AI development agenda without being constrained by another country’s policy. Eg: India can strengthen initiatives like the IndiaAI Mission and the Semiconductor Mission to build domestic capabilities.
  • Enhanced Global Collaboration Opportunities: The rollback encourages deeper cooperation between India and other nations, including the U.S., in AI research and innovation. Eg: Indian firms may now engage in joint ventures or technology partnerships with U.S. companies without facing restrictive export barriers.

How do new U.S. AI chip controls reflect a continuation of earlier strategies?

  • Ongoing Restriction on Adversaries: The U.S. continues to block access to advanced AI chips for countries like China by expanding export controls and adding more firms to the Entity List, just as the earlier framework aimed to do.
  • Shift from Trade to Technological Enforcement: Instead of broad trade bans, the new approach focuses on hardware-level restrictions, such as embedding features in chips to monitor or limit usage, reflecting the same strategic intent in a new form.
  • Sustained Focus on Controlling AI Diffusion: The introduction of location tracking mandates and usage controls in AI chips shows the U.S. is still trying to control how and where AI technology spreads, continuing the goals of limiting proliferation and maintaining dominance.

What are the global implications of U.S. AI export controls on innovation and technological sovereignty?

  • Push for Technological Self-Reliance: Countries affected by the controls are investing in domestic AI ecosystems and indigenous chip manufacturing to reduce dependence on U.S. technology, leading to the rise of multiple, parallel innovation hubs around the world.
  • Erosion of Trust and Collaboration: Export restrictions create privacy concerns, surveillance risks, and a sense of strategic vulnerability, prompting both allies and adversaries to hedge against U.S. influence, thereby weakening global scientific cooperation and technological integration.

What are the steps taken by the Indian government in AI chips?

  • IndiaAI Mission (2024): A ₹10,000 crore initiative focused on developing compute infrastructure, datasets, and talent.
  • Semiconductor Mission (ISM): Includes financial incentives and infrastructure support for AI chip manufacturing and design.
  • Collaborations with the private sector: Partnerships with companies like Micron, AMD, and Tata Group to build chip fabs and R&D centres in India.
  • Supercomputing initiatives: Under PARAM and National Supercomputing Mission, India is developing indigenous high-performance compute for AI workloads.
  • IndiaAI compute platform: Aimed at giving startups and researchers access to high-end GPU clusters.

Way forward: 

  • Promote Inclusive and Transparent AI Governance: The U.S. and other major powers should work through multilateral platforms to create balanced AI export norms that protect security interests without stifling global innovation or alienating partners.
  • Strengthen Global AI Collaboration Frameworks: Countries like India should advocate for open-access research, joint AI development programs, and capacity-building initiatives to ensure equitable access to AI technology and reduce dependency on a single ecosystem.

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