Alibaba orders staff to stop using Anthropic's Claude

Alibaba has instructed its employees to discontinue use of Anthropic’s Claude Code after the platform began flagging users who connected from China. The directive came as the Chinese e‑commerce giant faced increased scrutiny over the use of foreign artificial‑intelligence tools that may violate domestic data‑protection regulations. The company’s internal communications confirm that the ban applies to all staff and that alternative AI solutions will be explored.

Anthropic, the U.S. AI startup behind Claude, has publicly warned that it is actively preventing Chinese firms from accessing its models. In a statement, the company accused Alibaba of conducting extensive “distillation” campaigns, alleging that the Chinese firm operated roughly 25,000 fake accounts to train its own models on Claude’s data. Anthropic said it is working with regulators to enforce its usage policies and to protect its intellectual property from unauthorized replication.

The clash underscores the growing friction between Chinese technology firms and Western AI providers amid tightening regulatory oversight. While Alibaba’s move signals a shift toward domestically developed AI solutions, Anthropic’s accusations highlight the challenges of enforcing usage restrictions across borders. Both sides appear to be preparing for further legal and regulatory actions as the dispute unfolds.