Microsoft is expanding its AI business in China by supplying OpenAI-based models through its Azure cloud platform, according to multiple reports. Bloomberg and the Japan Times say Microsoft sells these models to major Chinese technology and internet companies, while the rivalry between the United States and China over AI capabilities continues to grow. The cited customer list includes firms such as ByteDance, Tencent Holdings, Ant Group, and Meituan. Times of India adds that ByteDance is a particularly large customer, reportedly spending over $1 billion annually on Microsoft’s AI services. Separate reporting also indicates that OpenAI and Anthropic do not supply their models in the Chinese market, citing concerns related to intellectual property and potential misuse. In addition, Times of India reports that OpenAI has privately complained that Microsoft is not doing enough to prevent Chinese companies from copying or “distilling” the capabilities of OpenAI models into their own systems. Across outlets, the central issue is that Microsoft, unlike other American AI model providers, is actively monetizing OpenAI model access in China despite heightened US efforts to restrict AI access.