8.AI Diffusion Framework: The US Framework for AI Diffusion is evaluating India solely based on its AI capabilities, ignoring the India-U.S. strategic partnership.
o The U.S. extends export controls across the entire AI technology stack: AI chips, chip-making tools, and closed AI model weights (essential for AI decision-making).
o Three-tier country classification:
ü Tier 1 - Key U.S. allies (unrestricted AI access)
ü Tier 2- Other countries, including India (limited AI access)
ü Tier 3 - U.S. adversaries (strict AI restrictions).
o U.S. companies can operate in Tier 2 countries but with strict conditions: Limited compute capacity & Restricted
o Impact: India may diversify its tech partnerships to reduce dependence on the U.S.