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Z.ai's ZCode Crisis Exposes AI Coding's Enterprise Trust Gap

Summary by digitimes.com
Chinese AI developer Z.ai has open-sourced its ZCode coding tool and is preparing a zero-data-retention option for its Model-as-a-Service (MaaS) platform after ZCode was found packaging local code repositories and attempting to upload them to the cloud.

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There was controversy over the fact that zCode, a coding tool of Chinese AI company Zhipu AI, transmitted the developer's source code and past revision records to an external server without consent. Users pointed out that blocking was not possible due to settings, and the risk of fatal information leakage was raised for corporate security. As a result, Zupu AI stopped the function and announced the deletion of data.

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tech360tv broke the news on Monday, September 21, 2026.
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