Alibaba bans staff’s Claude Code use after Anthropic’s ‘distillation’ claims
Ishaan Mukherjee, Published on Jul 3rd, 2026

Alibaba is set to ban employees from using Anthropic's Claude Code from July 10 over concerns it can identify China-linked users, Reuters reported, citing sources. Developers found the coding tool collects time zone and proxy data and embeds hidden markers in prompts sent to Anthropic. This comes days after Anthropic accused Alibaba of the largest known AI model distillation attack.
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