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The announcement by the United States of the rescission of its Framework for AI Diffusion, a set of export controls for Artificial Intelligence (AI) technology announced earlier this year, has been viewed as a good thing. The Framework was considered counterproductive to AI technology development and diplomatic relations. However, recent developments suggest that controls on AI are likely to persist, albeit in different forms.
The Ministry of Electronics and Information Technology announced the launch of a continuous empanelment process for AI compute providers, which allows firms to apply on an ongoing basis to supply AI compute and related services. While this may seem like a good move in the short term, the process impedes market dynamics and creates bureaucratic hurdles for both providers and users of compute infrastructure.
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