Microsoft's fastest-growing AI market is the one America fears most

AI Summary

Microsoft's fastest-growing AI market is China, where it sells OpenAI's GPT models through Azure to major companies like ByteDance and Tencent. Microsoft faces criticism from OpenAI for allegedly not preventing Chinese firms from copying its AI models.

Microsoft has built a billion-dollar AI business in China, selling OpenAI's GPT models through Azure to firms like ByteDance, Tencent, Ant Group and Meituan, even as OpenAI and Anthropic refuse to. ByteDance alone spends over $1 billion a year, making it Microsoft's biggest AI customer. OpenAI has privately complained Microsoft isn't doing enough to stop Chinese firms copying its models, a process known as distillation.