Microsoft Corporation (MSFT.US) has built a sizable business by selling AI models to Chinese enterprises, as ByteDance has been Microsoft’s largest AI customer in recent years, primarily using OpenAI models, with annual spending on Microsoft’s AI and cloud services estimated to breach USD1 billion, Bloomberg cited sources as saying.

Other Chinese technology companies, including Ant Group, MEITUAN-W (03690.HK) and TENCENT (00700.HK), have also invested heavily in AI models through Microsoft’s Azure cloud services.

Microsoft has reportedly established subsidiaries in China to keep pace with local innovation and serve multinational clients. President Brad Smith testified before Congress that Microsoft’s business in China remains relatively small, accounting for only about 1.5% of the company’s total revenue in 2024.

ByteDance, MEITUAN-W (03690.HK) and TENCENT (00700.HK) have not responded to the report, while an Ant Group spokesperson said the company develops its own AI models and that its core products do not rely on external models.
~

AASTOCKS Financial News
Website: www.aastocks.com

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