Microsoft offers relocation to hundreds of China-based AI staff amid U.S.-China tech tensions

Technology
Thursday, May 16th, 2024 4:58 pm EDT

Key Points

  • Microsoft urges China-based employees to consider relocation: The Wall Street Journal revealed that Microsoft has asked its cloud computing and artificial intelligence staff in China to contemplate moving out of the country amidst Washington’s crackdown on Beijing’s access to advanced technology. The company reportedly offered relocation opportunities to Chinese engineers, allowing them to transfer to countries like the U.S., Ireland, Australia, and New Zealand.
  • Approximately 700 to 800 employees targeted: Sources cited by WSJ mentioned that Microsoft extended this offer to about 700 to 800 individuals involved in machine learning and cloud computing-related work. While CNBC couldn’t independently verify the report, a Microsoft spokesperson confirmed the existence of an “optional internal transfer opportunity” without disclosing specific details about the affected staff’s number or affiliation.
  • Amid U.S. efforts to restrict China’s AI technology access: This move by Microsoft aligns with broader U.S. efforts to prevent China from advancing its AI technology, which could have military applications. The U.S. has imposed various restrictions on China, limiting its access to advanced chips and chip-making equipment necessary for training AI models. The Biden administration is reportedly considering tighter controls on exporting advanced AI models amid concerns about potential misuse for cyberattacks or the development of biological weapons.

Microsoft has reportedly urged its cloud computing and artificial intelligence staff in China to consider relocating out of the country, amidst increasing tensions between Washington and Beijing over technology access. The Wall Street Journal revealed this development, noting that predominantly Chinese engineers were offered transfers to countries like the U.S., Ireland, Australia, and New Zealand. It’s estimated that around 700 to 800 employees involved in cloud computing-related work, including machine learning, were presented with this opportunity. Although CNBC couldn’t independently verify the report, a Microsoft spokesperson acknowledged the “optional internal transfer opportunity,” refraining from disclosing specific details but emphasizing the company’s continued commitment to the region without any operational disruptions. Microsoft’s Asia-Pacific research-and-development group, housing about 7,000 engineers, mainly operates in China, according to WSJ. This strategic move aligns with U.S. efforts to curb China’s advancement in AI technology, fueled by concerns about potential military applications. Recent restrictions on China’s access to advanced chips and chip-making equipment aim to restrict the nation’s ability to train AI models. Now, the Biden administration is considering tighter controls on exporting advanced AI models, including those similar to Microsoft-backed ChatGPT, amid fears of cyberattacks or the creation of biological weapons. While little government oversight currently restricts companies like Microsoft from providing AI model services abroad, recent reports suggest growing apprehension about the potential misuse of AI capabilities. Microsoft’s long-standing presence in China, with its largest R&D center outside the U.S., underscores its deep-rooted ties to the region, despite escalating tensions and regulatory challenges faced by other Western tech firms.

For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/16/microsoft-offers-relocation-to-hundreds-of-china-based-ai-staff-.html