Meta Shuts Engineers Out of Claude Code and Codex Over Distillation Fears

According to a TipRanks report via Google News, Meta has barred its engineers from using AI coding tools like Claude Code and Codex over fears of model distillation. Distillation involves using outputs from large models to train smaller ones, potentially leaking proprietary knowledge. Meta's move aims to protect its own AI models' intellectual property. The news was published on June 30, 2026, sourced from TipRanks. This incident highlights growing security concerns among tech giants regarding AI tool usage, potentially impacting developer ecosystems.