Alibaba is banning employees from using Anthropic’s artificial intelligence tools for work, according to people familiar with the matter, in the latest sign of growing restrictions around AI use amid escalating U.S.-China technology tensions.
Starting July 10, the Chinese technology group will prohibit staff from using Anthropic’s Claude Code for business purposes, citing potential security risks. Alibaba has also classified the tool as high-risk software and instructed employees to remove Anthropic’s AI models and agent products from their devices, replacing them with the company’s own AI coding assistant, Qoder.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Dispute Follows Anthropic Allegations
The move comes weeks after Anthropic accused Alibaba of attempting to extract capabilities from its AI models through what it described as the largest known model distillation campaign against the company.
In a letter to the U.S. Senate Committee on Banking, Housing and Urban Affairs, Anthropic alleged that Alibaba had acted “brazenly” and “illicitly.”
AI Access Faces Tighter Controls
Anthropic’s terms of service prohibit companies in China and other countries it classifies as “adversarial nations” from using its models. According to the Financial Times, the company has also tightened controls to prevent Chinese firms from accessing Claude through third countries.
At the same time, claims circulated on Reddit and GitHub alleging that Claude Code contains hidden code capable of detecting whether users are based in China. Anthropic has not publicly responded to those allegations.
Chinese Companies Reassess AI Strategy
The restrictions extend beyond Alibaba. According to the Financial Times, Ant Group had provided employees with corporate Claude accounts through its Singapore entity, while ByteDance has reimbursed staff for personal Claude subscriptions so engineers can access the service via virtual private networks.
CNBC reported that ByteDance introduced the reimbursement programme in April to help employees “experience and learn” from a wider range of AI products.
Competition Intensifies
Alibaba’s decision reflects the increasingly fragmented AI landscape, as technology companies tighten internal policies, limit third-party AI tools and invest more heavily in proprietary models.
Neither Alibaba nor Anthropic immediately responded to requests for comment.
