Alibaba bans Anthropic's AI tools over security concerns
What's the story
Chinese e-commerce giant Alibaba has announced a ban on the use of US-based artificial intelligence (AI) company Anthropic's tools by its employees. The ban, effective from July 10, is due to concerns over potential back-door security risks associated with Anthropic's technology. According to CNBC, Alibaba has listed Anthropic's Claude Code as high-risk software within its internal operations.
Accusations
Ban comes after Anthropic accused Alibaba of AI theft
The ban comes after Anthropic accused Alibaba of trying to extract its AI capabilities through a "distillation attack." Anthropic's terms of service prohibit Chinese companies and other "adversarial nations" from using its models. Alibaba has now instructed its employees to uninstall all Anthropic models and agent products. They are now required to use Qoder, Alibaba's own AI assistant.
Monitoring
Temporary monitoring feature test
Anthropic had also tested a temporary monitoring feature to determine if users were operating from China or were linked to Chinese businesses. However, the company later abandoned this approach. Responding to public concerns, Anthropic executive Thariq Shihipar clarified that the feature was only an experiment meant to prevent account abuse from unauthorized resellers and protect against distillation.
Market dynamics
Rise of Chinese AI alternatives
China's AI industry has gained momentum recently with several companies launching advanced models at competitive prices. One such company is Beijing-based start-up Z.ai, whose GLM-5.2 model has been making waves in Silicon Valley. Meanwhile, US export controls continue to shape the competitive landscape, with restrictions on some of Anthropic's latest models driving interest toward Chinese alternatives among businesses seeking similar capabilities.