Alibaba Group Holding Ltd. will ban employees from using Anthropic’s Claude Code assistant starting July 10.

Reuters reports the company identified potential backdoor security risks within the software.

Alibaba’s Hong Kong-listed shares fell 0.7% following the announcement.

Anthropic previously accused individuals linked to Alibaba of misusing its AI models.

The decision follows Alibaba’s $600 million settlement with the U.S. Department of Justice regarding illegal platform sales.

These events increase regulatory and competitive pressures as Alibaba develops proprietary AI models.