South China Morning Post

Microsoft ‘offers relocation for workers in China’

Hundreds of people involved in machine learning given the option to move overseas, sources say

- Coco Feng and Che Pan

Microsoft is offering China-based employees working in artificial intelligen­ce (AI) the option of relocating to countries such as the US, Australia and Ireland, according to two people familiar with the matter.

The employees, including those from the Azure cloud computing team who were notified earlier this week, must make a decision by June 7. They could stay on with the China team if they decided not to relocate, one person said.

However, Microsoft has stopped hiring in China, according to one of the sources, so there will not be new job openings.

The Redmond, Washington­based technology giant has offices in Beijing, Shanghai and Suzhou, in eastern Jiangsu province. It did not immediatel­y respond to a request for comment yesterday.

Microsoft was making the offer to 700 to 800 people, mostly those working on machine learning, The Wall Street Journal reported, citing people familiar with the matter.

The tech firm told the staterun newspaper China Daily that the relocation programme affected “a small number of employees in China” who would “have the opportunit­y to choose internatio­nal rotations”. Those who stay in China “can continue in their current positions”.

The decision follows a move last year to relocate some of its top AI researcher­s from China to a new research lab in Vancouver, Canada, according to a report by the Financial Times.

Microsoft said then that the new Vancouver lab would be staffed by researcher­s from offices worldwide, including China.

The relocation­s come as Microsoft is betting big on AI. It is the biggest backer of ChatGPT maker OpenAI, and it uses the start-up’s tech in its Copilot tool that the firm is integratin­g into a slew of products from office apps to coding utilities.

However, the rapidly advancing technology has become a flashpoint in the US-China tech war.

Relocating AI personnel shows “the impact of geopolitic­al tensions between the US and China is being transmitte­d from the national level to the corporate level”, said Beijing-based think tank Ambound, adding that China needed to think long-term about “talent cultivatio­n and retention”.

At a bilateral meeting in Geneva on Tuesday, US officials raised concerns over the misuse of AI, including by China, while Beijing made clear its “solemn position” on US restrictio­ns and suppressio­n of China in the AI field.

The administra­tion of US President Joe Biden was mulling new restrictio­ns on the export to China of proprietar­y or closed source AI models, including the large language models that powered popular chatbots like ChatGPT, Reuters reported last week, citing sources familiar with the matter.

Against this backdrop, Microsoft has been the only major industry player that has continued to court business for its AI services in mainland China and Hong Kong.

While Beijing restricts overseas AI services on the mainland, OpenAI and Google have blocked Hong Kong internet protocol addresses from using their AI products despite no laws explicitly preventing them from serving the market.

If the US restricts the use of AI software, it would add to mounting restrictio­ns on Chinese firms’ access to advanced semiconduc­tors and chip-making tools.

The US also recently imposed additional tariffs on Chinese electric vehicles and semiconduc­tors, and has been pushing forward a bill to restrict commercial ties with Chinese biotech companies and their subsidiari­es.

 ?? ?? Microsoft’s postings may involve jobs in the US and Australia.
Microsoft’s postings may involve jobs in the US and Australia.

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