Microsoft is offering its China-based employees working in AI the opportunity to relocate to overseas locations such as the US, Australia, and Ireland, according to sources familiar with the matter. The offer extends to Azure cloud computing team employees, who were notified earlier this week and have until 7 June to decide. Those who opt not to relocate can remain with the China team, although Microsoft has halted new hiring in China, eliminating job openings.

The relocation program affects approximately 700 to 800 people, primarily those engaged in machine learning. Microsoft has offices in Beijing, Shanghai, and Suzhou but has not responded to requests for comment regarding the relocation offer. Last year, Microsoft relocated some of its top AI researchers from China to a new research lab in Vancouver, Canada, as part of its broader AI strategy.

Why does it matter?

The offer to the employees comes amidst escalating geopolitical tensions between the US and China, which have increasingly impacted corporate decisions. At a bilateral meeting in Geneva, US officials expressed concerns about the misuse of AI, particularly by China. The Biden administration is considering new restrictions on exporting proprietary AI models to China, reflecting growing scrutiny over technology transfer.

Despite these tensions, Microsoft remains committed to its AI services in mainland China and Hong Kong, distinguishing itself from competitors like OpenAI and Google, which have restricted access to their AI products in these regions. The potential restrictions on AI software exports would add to existing limitations on Chinese firms' access to advanced semiconductor technology, further complicating US-China relations in the tech sector.