China's Z.AI (2513) said on Monday that it has open-sourced ZCode and addressed the security issues, after the coding assistant was reported to have uploaded local workspace data to external servers without user consent.
The Chinese artificial intelligence developer behind the GLM model family noted that it has placed the code under community scrutiny and made ZCode more open and transparent.
This came as engineers discovered that ZCode had been automatically exfiltrating entire local source code repositories to overseas cloud servers upon launch last week, sparking widespread concerns over privacy and intellectual property.
Z.AI highlighted that no data is retained and that it has never been used for model training.
The Shanghai-based company also said it will establish an ongoing product security vulnerability reporting and response process in the future. It welcomes developers to continue reviewing ZCode and reporting potential issues, and will provide rewards based on the severity of the issues reported.
Its shares once dropped nearly 6 percent before closing 1.8 percent higher on Monday.