Meta Bans Claude Code and Codex for Applied AI Engineers Over Model Distillation Concerns

According to internal documents obtained by The Information on June 29, Meta has prohibited engineers in its Applied AI department from using Anthropic's Claude Code and OpenAI's Codex, citing concerns about model distillation risks. The policy, which took effect at the end of June after being drafted in May, aims to prevent competitor AI models' outputs from being inadvertently incorporated into Meta's Llama model training data. Meta also flagged risks of internal code and proprietary information being transmitted to competitor servers during tool usage, potentially exposing trade secrets and intellectual property.
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