US Alleges Alibaba Supplied PLA With Data and AI Tools, Raising Alarm

Washington, Nov 15, 2025: The White House has reportedly accused Chinese tech giant Alibaba of supplying the People’s Liberation Army (PLA) with sensitive data, AI tools, and cyber capabilities that could threaten U.S. national security, according to a declassified memo highlighted by the Financial Times.

The memo claims that Alibaba, a global e-commerce and cloud computing powerhouse, provided Chinese military personnel access to customer data, AI-linked services, IP addresses, WiFi information, and even insights into zero-day software vulnerabilities. U.S. officials argue that these capabilities could be exploited in cyber operations against U.S. targets, marking a significant escalation in concerns over Chinese tech firms' potential military ties.

“These threats are being taken very seriously,” a U.S, emphasizing that the administration is actively working to contain potential cyber intrusions arising from untrusted vendors and tech platforms linked to foreign military entities.

According to sources familiar with the memo, some Alibaba employees allegedly passed along previously unknown software flaws to the PLA, offering them a potential advantage in cyber warfare. While U.S. authorities have yet to independently verify every claim in the memo, the pattern mirrors broader American concerns about the role of Chinese cloud and AI companies in global cybersecurity risks.

Alibaba, however, strongly denied all allegations. “The assertions and innuendos in the article are completely false,” the company said in a statement. Alibaba questioned the credibility of the anonymous leaks and called the report a “malicious PR operation” intended to undermine recent trade agreements between the U.S. and China.

China’s embassy in Washington echoed these denials, condemning the allegations as a “complete distortion of facts” and warning that such claims are “extremely irresponsible.” Spokesperson Liu Pengyu said, “Without valid evidence, the U.S. jumped to an unwarranted conclusion. China firmly opposes these baseless accusations.”

The White House has declined to provide an official comment on the memo. Lawmakers in Washington are reportedly pressing for tougher actions against Chinese technology firms amid growing concerns about cybersecurity and the transfer of sensitive technologies.

This controversy emerges amid heightened tensions over AI and cloud technologies, as the U.S. government seeks to scrutinize foreign tech firms’ access to sensitive data and their potential military connections. Analysts warn that if substantiated, the allegations could have far-reaching implications for U.S.-China trade, technology cooperation, and global cyber norms.

Experts also note that the allegations highlight a critical challenge for international cybersecurity: the blurred lines between commercial tech innovation and state-directed military use. “The risks of dual-use technologies—AI, cloud computing, and software vulnerabilities—are becoming more prominent. The Alibaba case underscores the need for careful regulation and monitoring of foreign tech firms with global reach,” said cybersecurity analyst Dr. Eleanor Matthews.

As the story unfolds, global attention is focused on Alibaba, U.S. regulatory measures, and the broader geopolitical stakes of AI and cybersecurity. Lawmakers are expected to debate potential restrictions on Chinese tech companies, including cloud service operations, AI research collaboration, and cross-border data access.

The controversy further complicates U.S.-China relations, coming just weeks after renewed trade negotiations aimed at easing tensions. For now, Alibaba maintains its stance of denial, while U.S. officials and lawmakers continue to weigh the potential national security implications of one of China’s largest and most influential technology conglomerates.