Microsoft refuses to restrict China’s access to AI models, despite OpenAI’s decision

Despite the blocking of OpenAI’s API, Microsoft Azure customers in China can still access AI models through the company’s joint venture in the region.

OpenAI’s planned ban on application programming interface (API) access to its artificial intelligence (AI) models will not affect Microsoft Azure customers in China. Seeking Alpha reported Monday (July 8) that a paywalled article from The Information said Azure works in China through a joint venture and has made it clear in public statements that its customers in China can use the AI models.

The report says that OpenAI will shut down Chinese users’ access to its APIs starting Tuesday, July 9. A Microsoft representative said there have been no changes to the Azure OpenAI Service offerings in China. OpenAI, as an independent company, continues to provide eligible customers in the country with access to models deployed outside of China.

OpenAI announced on June 25 that it would take additional measures to hinder the use of its AI software in China. One way they plan to do this is by enforcing a policy they already have that doesn’t allow users from countries other than the ones they support.

The report from Bloomberg stated that dozens of countries can access OpenAI’s services. The company’s rules say that people accessing its products in countries like China that aren’t on that list could have their accounts blocked or suspended. Even though the company’s ChatGPT isn’t available in mainland China, Reuters reported on June 25 that companies have been able to use its API platform to make their apps.

“We are taking extra steps to block API traffic from regions where we don’t allow access to OpenAI’s services,” a spokesperson for the company said in the report.

Biden Administration’s Tough Stance on AI

In January, it was said that the Biden administration wanted strict rules on big cloud service providers like Microsoft. These rules would require these companies to identify and actively investigate foreign clients using their platforms to build AI applications.

The Biden administration has also tried to make it harder for China to get advanced semiconductors. There is a lot of worry in the Biden administration about how quickly China is developing AI and other next-generation technologies. They see China as a major global strategic competitor.

In a new report, the World Intellectual Property Organisation (WIPO) said that China has filed more than six times as many generative AI patents as the United States, making it the leader in this field.