Zhipu AI's ZCode apologized for a data privacy controversy involving its default code repository indexing feature which uploaded local code to cloud servers. While data was deleted after generating Wiki pages, users were concerned about the default activation. ZCode has fixed the vulnerability and plans to open-source the code for third-party review to rebuild trust. The company also issued additional weekly quotas to all users and committed to transparently publishing the review progress to address concerns over AI tool data handling and privacy transparency.