Microsoft’s Azure AI team in China is currently organizing to withdraw from the Chinese market.
Recently, there have been reports in various communities about the Microsoft Azure AI team in China collectively moving to the United States and Australia. Microsoft has previously sent emails notifying the withdrawal of core teams, including the Azure ML team, from China, with the company taking responsibility for relatives’ visa issues. Rumors suggest that this adjustment involves hundreds of employees.
In response to this information, Microsoft China’s official statement indicated that “this is providing some employees with an optional internal transfer opportunity and will not affect the company’s operations in China.“
However, internal sources at Microsoft China revealed to Sina Technology that “the news came suddenly, and everyone is puzzled!” Many employees expressed concerns, with some speculating that “making such a big decision in such a short time, relocating with families to work abroad, is this a disguised layoff?“
There may have been signs of this development earlier. Internal sources disclosed that Microsoft is currently “isolating” China in terms of AI research, with limitations on accessing certain cutting-edge technologies such as quantum computing, facial recognition, and synthetic media at the Microsoft Asia Research Institute in Beijing.
Another insider revealed, “After the important departments move away, the unimportant departments will be laid off, and the AI-related departments in the China region can be closed!“
Microsoft China insiders told Sina Technology that “Microsoft has already issued a unified external explanation, and the notification document is in English only. Indeed, some employees have opportunities for transfers.” Currently, the adjustments primarily focus on the AI field, and for those willing to relocate, the company will facilitate visas for spouses and children.
However, many internal employees remain concerned. Some believe that Microsoft’s approach lacks consideration for the actual impact on employees. “Family members have never traveled abroad before, and after relocating, they may struggle to adapt to the new environment, coupled with language communication issues, what should we do?” “Microsoft has given until June 7th to make a choice, either go to the United States or choose compensation for resignation.”
Some employees even suspect that this is a disguised layoff. “Forcing employees and their families to move abroad in such a short time, it’s hard to make such a decision.“
In recent years, Microsoft has been focusing on the AI field. Since investing $1 billion in OpenAI in 2019, Microsoft’s investments in the AI field have continued to increase. Currently, Microsoft’s total investment in OpenAI exceeds $13 billion. In addition, the company has established the Microsoft AI team, led by Mustafa Suleyman, co-founder of DeepMind and Inflection, to fully promote the Copilot project.
This is not the first time Microsoft has transferred experts or researchers from China to foreign countries. Last June, there were reports that Microsoft was moving AI top scientists from Microsoft Asia Research Institute (MSRA) in China to Vancouver. Microsoft Asia Research Institute responded to the media, stating, “Microsoft will establish a new laboratory in Vancouver, Canada, confirming that it will include AI research experts from China in the new laboratory.“
Earlier, the news of Microsoft Asia Research Institute’s withdrawal from China also attracted widespread attention, although Microsoft had denied this.
Industry analysts believe that both commercial and strategic considerations drive Microsoft’s global layout. The significant investments in the Southeast Asian market may stem from the potential economic growth and the demand for digital transformation in that region. The complexity and competitive environment of the Chinese market may lead Microsoft to adopt a more cautious strategy in that region.
According to Microsoft President Brad Smith, China accounts for only 1.5% of Microsoft’s sales.
Industry insiders analyze that “with 1.5% market share, plus the inability to land the new Bing AI search in China, Microsoft’s ‘isolation‘ of Chinese AI becomes even more apparent. If a decision needs to be made by mid-June, the time left for these technical experts to consider is indeed very limited.”
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