As Washington tightens restrictions on Beijing’s access to innovative technology, Microsoft is reportedly asking employees in China’s cloud computing and artificial intelligence businesses to consider migrating elsewhere.
According to anonymous sources, the Wall Street Journal broke the information on Thursday, stating that the workers, largely Chinese engineers, had been offered the possibility to transfer to countries such as the United States, Ireland, Australia, and New Zealand.
According to one source, Microsoft extended the offer to approximately 700 to 800 individuals working in machine learning and other cloud computing-related fields.
CNBC could not independently verify the report.
In a response to CNBC, a Microsoft spokeswoman stated that the business had “shared an optional internal transfer opportunity with a subset of employees” but did not provide information on the number or affiliation of those affected.
“We remain committed to the region and will continue to operate in this and other markets where we have a presence,” the spokesperson stated, adding that any prospective transfers would have no affect on operations.
According to the Wall Street Journal, Microsoft’s Asia-Pacific research-and-development department employs over 7,000 engineers, the majority of whom are headquartered in China.
The decision comes as the United States seeks to prevent China from developing cutting-edge AI technology that could be used for military purposes. Over the last two years, the US has imposed a series of limitations on China, limiting its ability to purchase advanced processors and chip-making equipment that can be used to train AI models.
According to recent reports, the Biden administration is considering imposing new restrictions on the export of advanced AI models, such as the huge language model that runs Microsoft’s ChatGPT.
There is currently minimal regulatory regulation preventing corporations such as Microsoft, one of the United States’ leading cloud computing and AI players, from selling or offering AI model services to foreign entities.
The United States is apparently concerned that AI models, which mine massive quantities of data to generate content, could be used to launch cyber attacks or develop biological weapons.
Earlier this year, Microsoft published a research claiming that state-sponsored hackers from Russia, China, and Iran were utilizing OpenAI tools to hone their abilities and boost their hacking activities.
Microsoft has been deeply established in China for more than three decades, while other Western tech companies have been driven out by tough regulations. The corporation claims that China is home to its largest R&D center outside of the United States.
