Microsoft has built a substantial business by selling artificial intelligence models to Chinese tech giants, such as ByteDance, Ant Group, Meituan (3690), and Tencent (0700), Bloomberg reported, citing people familiar with the matter.
The people said that ByteDance has been Microsoft’s largest AI customer in recent years, primarily using OpenAI ‘s model, with annual spending on Microsoft’s AI and cloud services exceeding US$1 billion (HK$78 billion). Meanwhile, other tech firms, including Ant Group, Meituan, and Tencent, are also spending heavily on AI models through Microsoft’s Azure cloud services. Most of their spending is directed toward supporting business expansion outside of China.
An Ant Group spokesperson said the company develops its own AI models and does not rely on external models for its core products.
Microsoft reportedly believes that having a presence in China helps it keep pace with local innovation and serve multinational clients.
With Microsoft’s unique partnership with OpenAI, it has established its own policies for selling AI models such as the GPT series in China. Microsoft also offers a variety of other AI models in China, while excluding models such as Anthropic. The company brings these models to market for a wide range of applications, from software development to customer service automation.
