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Alibaba Bans Anthropic’s Claude Code Over Security Concerns

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.

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.

A New Twitter-Inspired Social Network Is Taking Shape

A new social network called Twitter.now is entering the market, with a founding team that includes former Twitter trademark counsel Stephen Coates. The service is being developed by startup Operation Bluebird.

As Ars Technica reported, X sued the company last year and asked a Delaware judge to block the launch. Operation Bluebird argued in a petition that X had abandoned trademarks including “Twitter” and “Tweet.”

Coates has said the project is not an attempt to recreate the original Twitter. In a LinkedIn post, he described the platform as a new public space focused on trust, transparency and user choice.

AI System To Rate Posts

Twitter.now is currently being tested, with early access priced at $20. Its main feature is VERA, an AI system designed to evaluate posts, verify claims and provide sources and context.

Posts receive a trust score, with users eventually able to set a minimum score to filter their feeds. The company says this approach will give people more control over what they see instead of leaving those decisions entirely to an algorithm.

Moderation Remains A Challenge

Scaling moderation will be one of the platform’s biggest tests. Social networks have repeatedly struggled with content moderation as their communities grow, and newer platforms such as Bluesky have faced similar criticism.

Operation Bluebird says VERA will form the basis of its moderation and verification system. A second version is already planned, with expanded tools that would let users set a specific trust threshold for the posts appearing in their feeds.

For now, Twitter.now remains in an early testing phase, combining the familiarity of the Twitter name with an AI-driven approach to evaluating online information.

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