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China's Alibaba bans Anthropic AI for employees after 'distillation attack' accusation

CNBC July 06, 2026 1 views
China's Alibaba bans Anthropic AI for employees after 'distillation attack' accusation

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  • Alibaba will ban employees from using Anthropic's artificial intelligence tools starting Friday.
  • The Chinese company put Anthropic's Claude Code on a high-risk software list.
  • Anthropic's terms of service do not allow Chinese companies and other "adversarial nations" to use its models.
    Alibaba bans Claude code usage
    Alibaba will ban employees from using Anthropic's artificial intelligence tools for work purposes as of July 10, citing concerns that the U.S. company has back-door security risks, CNBC confirmed on Monday.
    The Chinese e-commerce giant has put Anthropic's Claude Code on a high-risk software list, according to people familiar with the matter, who asked not to be named in order to discuss internal operations.
    Alibaba's move follows Anthropic's decision in June to send a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, blaming the Chinese tech titan of "brazenly" and "illicitly" attempting to extract its AI capabilities. Anthropic accused Alibaba of carrying out "the largest known
    distillation attack" on it to date.
    Anthropic's
    terms of service dictate that Chinese companies and other "adversarial nations" are banned from using its models.
    Alibaba employees are required to uninstall all Anthropic models and agent products and instead use the Chinese company's own AI assistant, Qoder, the people said.
    Alibaba and Anthropic both declined to comment.
    The
    Financial Times reported Friday that Anthropic is moving to close loopholes that have allowed Chinese companies to bypass restrictions and access Claude through third countries.
    The UK newspaper cited sources as saying Chinese fintech group Ant "had provided employees with corporate Claude accounts that were accessed through the company's intranet, which is connected to its Singapore-based entity."
    The FT reported that TikTok parent company Bytedance "does not facilitate access to Claude," but did start a reimbursement program that allows engineers to expense personal subscriptions. The engineers can access those subscriptions on virtual private networks.
    Ant and ByteDance declined to comment on the Financial Times report.
    ByteDance's reimbursement policy, unveiled on April 2, is meant to encourage staffers to "experience and learn" about a wider range of AI products to enhance their skills, a person familiar with the matter told CNBC. The person asked not to be named in order to discuss internal policies.
    TeraWulf CEO on Anthropic deal: Demand for power is very significant and it's the tip of the iceberg

    <small>Source: CNBC</small>

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