Microsoft’s Narrow Bet on China: How Azure AI Demand From ByteDance and Others Keeps It in the Game
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Microsoft’s Narrow Bet on China: How Azure AI Demand From ByteDance and Others Keeps It in the Game
Microsoft once viewed an exit from China as nearly unthinkable. In 2010, as Google prepared to leave over censorship and cyberattacks, Bill Gates and then-CEO Steve Ballmer called the move an overreaction. Fast forward. The company has shuttered at least 15 branch offices and joint ventures there in the past five years. It came close to pulling out entirely in 2023. Geopolitical risks loomed large. Returns looked too small. Yet it stayed. Barely…
Five years later, Microsoft's relationship with China has become more complicated. According to corporate filings, Microsoft has closed at least 15 branches and joint ventures in China over the past five years; five people familiar with the matter told Reuters that the company is carrying out what they describe as a "gradual withdrawal."
In the last five years, at least fifteen Microsoft subsidiaries and joint ventures in the People's Republic of China have ceased operations, according to internal documents. This suggests a policy of gradual withdrawal from the Asian market and an intention to minimize the company's exposure in the region. Such a move could represent a drastic shift in Microsoft's roadmap, which in the past considered leaving China unthinkable. In 2010, when Goo…
Microsoft Nearly Left China. AI Gave It a Reason to Stay
Microsoft has sharply reduced its China footprint, but Azure and AI demand from Chinese companies operating abroad are giving it a reason to stay. The post Microsoft Nearly Left China. AI Gave It a Reason to Stay appeared first on TechRepublic.
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