New Delhi, July 6 -- Chinese tech behemoth Alibaba has banned its employees from using Anthropic's Claude Code at work, as per multiple media reports. The news about Alibaba stopping its employees from using the popular AI-powered coding software comes shortly after a post on Reddit last week alleged that Anthropic had added hidden spyware in Claude Code that could identify users who were using the software from China.

"Claude Code checks whether you have a proxy enabled - and if so, covertly transmits, through invisible alterations to the system prompt, whether you are in China, whether you are proxying to a Chinese URL, and whether you are affiliated with a Chinese AI lab. Anthropic further attempted to obfuscate this code within the C...