Explorer

Alibaba Employees Can No Longer Use Claude Code. Here's Why

Alibaba has quietly told its employees to stop using Claude Code and switch to its own tool, flagging the popular AI assistant as high-risk software starting July 10.

Show Quick Read
Key points generated by AI, verified by newsroom
  • Alibaba bans employees from using Anthropic's Claude Code.
  • Ban follows concerns over Claude Code inspecting user environments.
  • Anthropic accused Alibaba of attempting AI model distillation.

Alibaba has reportedly asked its employees to stop using Anthropic's Claude Code and switch to its in-house coding assistant, Qoder, after internally classifying the tool as "high-risk software." The ban is expected to take effect from July 10. The move adds to the already strained relationship between the two companies, which have been at odds over AI model training practices. 

Neither Alibaba nor Anthropic has issued a public statement on the reported workplace restriction.

Why Did Alibaba Flag Claude Code As High-Risk?

According to Reuters, the decision follows concerns raised by developers over certain built-in mechanisms in Claude Code that appeared to inspect user environments, including time zones and proxy-related details, before sending prompts to Anthropic's servers. This raised alarms among users in China, where Anthropic officially restricts access to its services.

ALSO READ: WhatsApp's New Green Dot On iPhone Tells You Exactly Who Is Online Right Now

Responding to those concerns on X, Anthropic engineer Thariq Shihipar clarified that the feature was "an experiment we launched in March," aimed at preventing account abuse by unauthorised resellers and protecting its models from distillation.

What Is The Dispute Between Anthropic And Alibaba About?

The reported ban also comes against the backdrop of a broader conflict. Last month, Anthropic accused Alibaba of attempting to extract capabilities from its AI models through distillation, a process where a smaller model is trained on outputs from a more advanced one. 

In a letter to two US senators, reviewed by Reuters, Anthropic alleged such efforts could accelerate Chinese AI companies' access to capabilities found in its advanced models.

ALSO READ: Amazon Prime Day 2026: 5 Deals Worth Checking Before The Sale Closes Tonight

Separately, Microsoft is also reportedly scaling back Claude Code use internally, though for different reasons, primarily to consolidate tools and cut costs by shifting developers to GitHub Copilot CLI. Unlike Alibaba's case, this is not driven by security concerns. Anthropic's models will still be available through that platform.

Frequently Asked Questions

Why did Alibaba ban its employees from using Anthropic's Claude Code?

Alibaba classified Claude Code as

How did Anthropic explain the feature that inspected user environments?

An Anthropic engineer clarified it was an experiment launched in March. Its purpose was to prevent account abuse by unauthorized resellers and to protect its models from distillation.

What is the broader conflict between Anthropic and Alibaba about?

Anthropic previously accused Alibaba of attempting to extract capabilities from its AI models through a process called distillation. Anthropic feared this could accelerate Chinese AI companies' access to its advanced models.

About the author Annie Sharma

Annie Sharma is a technology journalist at ABP Live English, focused on breaking down complex tech stories into clear, reader-friendly narratives. Gaining hands-on experience in digital storytelling and news writing with leading publications, Annie believes technology should feel accessible rather than overwhelming, and follows a clear, reader-first approach in her work.

For tips and queries, you can reach out to her at annies@abpnetwork.com.

Read More
Advertisement

Top Headlines

Wzatco Yuva Go Ultra Review: A Multiplex That Fits In Your Backpack (With Some Quirks)
Wzatco Yuva Go Ultra Review: A Multiplex That Fits In Your Backpack (With Some Quirks)
Alibaba Employees Can No Longer Use Claude Code. Here's Why
Alibaba Employees Can No Longer Use Claude Code. Here's Why
WhatsApp's New Green Dot On iPhone Tells You Exactly Who Is Online Right Now
WhatsApp's New Green Dot On iPhone Tells You Exactly Who Is Online Right Now
Amazon Prime Day 2026: 5 Deals Worth Checking Before The Sale Closes Tonight
Amazon Prime Day 2026: 5 Deals Worth Checking Before The Sale Closes Tonight
Advertisement

Videos

Big Update: Confusion Over Champat Rai’s Arrival as High-Stakes Session Set to Begin
Latest Update: Ram Temple Trust Meeting Delayed as Members Arrive; Champat Rai Reaches Venue, Anil Mishra Yet to Arrive
Breaking news: Champat Rai, Anil Mishra Skip Crucial Session on Their Resignations
BREAKING: Ram Temple Trust Convenes as Resignations of Two Senior Members Dominate Agenda Today
BREAKING: Ram Temple Trust Meeting Sees Key Absences as Senior Trustees Arrive Amid Questions
Advertisement

Photo Gallery

Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Embed widget