Capital Insider
  • Founders
  • /Capital
  • /Signals
  • /Companies
  • /Deep Tech
  • /Magazine
  • /Events
  • /Members
Join
FoundersCapitalSignalsCompaniesDeep TechMagazineEventsMembers
Capital Insider
Inside India's Ambition Economy
Editorial
  • Founders
  • Capital
  • Companies
  • Magazine
  • Members
Company
  • About
  • Privacy Policy
  • Terms
  • Editorial Policy
  • Grievance Officer
  • Contact
Community
  • Founders
  • Events
  • Innovation
  • Members
© 2026 Capital Insider. All rights reserved.Built for India's Ambition Economy
AI

Alibaba to Bar Staff From Claude Code as US-China AI Rivalry Deepens

Chinese tech giant labels Anthropic's coding tool "high-risk," pushes employees toward homegrown alternative Qoder

By Nikhil Sumal6 July 2026 at 10:35 pm4 min read
Alibaba to Bar Staff From Claude Code as US-China AI Rivalry Deepens

Chinese tech giant labels Anthropic’s coding tool “high-risk,” pushes employees toward homegrown alternative Qoder

Alibaba is all set to stop its employees using Claude Code, a popular AI tool for coding that is developed by Anthropic, with effect from July 10 due to its internal classification of the tool as high-risk software. Following the announcement, the employees have been asked to shift to Qoder, Alibaba’s own AI coding assistant as a replacement.

Anthropic’s own restrictions — and a walk-back

The move comes even as Anthropic maintains its own ban on Chinese companies and foreign entities they own from accessing its models and tools. That policy has reportedly had gaps, allowing some China-based users to keep using Claude despite the restrictions.

To close those gaps, Anthropic is said to have quietly deployed a version of Claude carrying hidden tracking code designed to flag users’ locations and any ties to Chinese firms, per a report from The Information. The company has since pulled back from the effort.

Anthropic’s Thariq Shihipar addressed the matter on X, describing it as a March-era experiment aimed at curbing account abuse by unauthorized resellers and guarding against distillation, adding that stronger safeguards have since been put in place and the feature was already due to be retired.

A widening rivalry

The dispute unfolds against a backdrop of intensifying US-China competition in AI, with Chinese firms rolling out cheaper, competitive models. Z.ai’s GLM-5.2, released last month, has drawn attention in Silicon Valley for coding and agentic abilities that rival top US systems at a much lower cost — prompting comparisons to an earlier “DeepSeek moment.”

Washington’s export controls on advanced models, including Anthropic’s Claude Fable 5 and Mythos 5, have also fueled interest in Chinese alternatives, though Anthropic confirmed this month that the Commerce Department has since lifted those restrictions.

More in AI
TCS Is Building a Team of Up to 8,900 AI Deployment Engineers and Hunting for Acquisitions as It Bets on AI Creating New Business
AI

TCS Is Building a Team of Up to 8,900 AI Deployment Engineers and Hunting for Acquisitions as It Bets on AI Creating New Business

By Nikhil Sumal4 min read
Google CEO Sundar Pichai Admits the Company Is Behind in Agentic Coding, the AI Race That Is Actually Making Money
AI

Google CEO Sundar Pichai Admits the Company Is Behind in Agentic Coding, the AI Race That Is Actually Making Money

By Nikhil Sumal4 min read
Terrorist Groups Are Using ChatGPT, Gemini, and Claude to Plan Attacks. The AI Industry Has Significantly Underestimated the Threat.
AI

Terrorist Groups Are Using ChatGPT, Gemini, and Claude to Plan Attacks. The AI Industry Has Significantly Underestimated the Threat.

By Nikhil Sumal4 min read