Microsoft makes big AI inroads in China by selling OpenAI models (opens original article in a new tab)

Microsoft has expanded its AI business in China by selling OpenAI models to major Chinese companies through Azure, despite US-China AI tensions and concerns over intellectual property theft.

• Microsoft sells OpenAI models to Chinese companies like ByteDance, Ant Group, Meituan, and Tencent via Azure cloud service
• Microsoft's China AI business grew rapidly, with Azure AI revenue tripling in the fiscal year ending June 2025
• Microsoft partners with local providers in China but does not host OpenAI models in Chinese server farms due to IP theft concerns
• Microsoft employs automated monitoring to prevent customers from using AI models to build competing products