Stealing as much data and trade secrets as possible to use to train models in the hope of increasing the value of those models is the only business plan for Anthropic and OpenAI. Any kind of user tracking is dangerous in this situation.
The legality of data collection and trade secrets
• Copyright disputes: AI companies often rely on the doctrine of fair use, arguing that training models is a transformative process. However, authors and publishers argue that massive systematic copying of data harms the market for original creators.
• Confidential information: The use of trade secrets and personal data without consent is one of the most sensitive issues that stricter rules are being developed in the EU and the US to address.
This is why there are huge lawsuits, and some companies are choosing to abandon OpenAI or Anthropic services and switch to open source alternatives.
Risks of User Tracking
• Privacy Violations: When corporate or personal data is collected, stored, and used to train models without explicit consent, there is a significant risk of unauthorized information leakage.
• Business Risks: When using public AI tools for business purposes, corporate secrets can become part of the models’ knowledge base, posing a risk to confidentiality and intellectual property.
“SINGAPORE -- China said Wednesday that it has found "security backdoor vulnerabilities" in Anthropic's popular Claude Code, stepping up tensions in the race with the U.S. for artificial-intelligence supremacy.
Several versions of the American coding tool, released between April and June, "can send sensitive information such as user location and identity to remote servers without the user's consent due to a built-in monitoring mechanism," China's National Vulnerability DataBase, a government-run cybersecurity platform, said in a statement.
The agency warned such a mechanism could pose "a serious threat." It advised users to uninstall the software or update to its latest version.
Last week, Chinese tech giant Alibaba told employees that it would ban their use of Claude Code at work from this Friday.
Anthropic didn't respond to a request for comment on China's Wednesday statement. The U.S. company has previously said that Chinese companies such as Alibaba aren't eligible to access Claude.
China's move came after a post on online forum Reddit last week alleged that Anthropic had secretly inserted code into the software to identify users who accessed it from China.
In a response to the allegations on Reddit, an Anthropic employee said on X that the code was part of an experiment the American startup started in March. The experiment was "meant to prevent account abuse from unauthorized resellers and protect against distillation," the employee said.
Since February, Anthropic has accused Alibaba and several other Chinese AI labs of illicitly distilling its models-the practice of training a new model on the outputs of another.
China hasn't approved Anthropic's services for public use, and Anthropic has also restricted access to Claude in China on national-security grounds. Still, the American AI model has been popular among Chinese researchers and engineers who use it through overseas proxies, often subsidized by their employers.” [1]
1. China Says It Finds Claude Code Flaws. Huang, Raffaele. Wall Street Journal, Eastern edition; New York, N.Y.. 09 July 2026: B4.
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