Alibaba has reportedly banned employees from using Anthropic's Claude Code and directed them to its own Qoder platform amid a growing dispute over features that can help identify China-linked users. Reuters reports: The ban is part of a deepening spat between the two companies after Anthropic accused Alibaba of illicitly extracting its Claude AI model capabilities -- a dispute that highlights the frantic race between the U.S. and China to take the lead in artificial intelligence. [...] Anthropic said last month that it had suffered a strike by Alibaba, which it described as a "distillation" effort that involves training a less capable model on the outputs of a stronger one. The distillation helps accelerate China's ability to reach Anthropic's advanced Mythos Preview capabilities, it said in a letter seen by Reuters that was sent to two U.S. senators. Alibaba's ban comes just days after developers said Claude Code contained mechanisms that inspected user environments, including timezone and proxy-related information, and inserted subtle markers into prompts sent to Anthropic's servers. An Anthropic employee wrote on Tuesday on X that the feature was "an experiment we launched in March" intended to prevent account abuse by unauthorized resellers and protect against model distillation. The person who spoke to Reuters about Alibaba's ban said that Anthropic's restrictions targeting China were difficult to enforce on individual users who can deploy servers in the United States and make traffic appear as if it originated there. But companies were more aware of legal and compliance risks, the person added.Read more of this story at Slashdot.