Microsoft Faces Significant Restructuring of its Cloud Computing and AI Operations in China, Offering Hundreds of Employees the Chance to Relocate Abroad

Amid growing tensions between Washington and Beijing over access to advanced technology, the company is offering approximately 700 to 800 employees, mainly Chinese-national engineers working in machine learning and cloud computing, the opportunity to move to countries such as the USA, Ireland, Australia, and New Zealand.

This measure follows efforts by the Biden Administration to introduce stricter controls over China's ability to develop cutting-edge AI technology. In doing so, the White House is considering new regulations that would require Microsoft and other US cloud computing companies to obtain licenses before granting Chinese customers access to AI chips.

A Microsoft spokesperson confirmed that the offer of internal transfer opportunities is part of the global business strategy, emphasizing that the company remains committed to the region and will continue its operations in China. The teams based in China are an important part of Microsoft's global research and development for core products. Affected employees have the choice to accept the transfer offer or to continue working in China.

This development has attracted particular attention in Washington due to the significance of Microsoft's cloud business and AI research in China. Microsoft employs about 7,000 engineers in its Asia-Pacific research and development group, most of whom are based in China.

Globally, Microsoft is making substantial investments to expand its AI infrastructure, including spending billions on building data centers worldwide. This strategic reallocation of resources reflects a broader adaptation to global geopolitical developments and the necessity to navigate both business and regulatory challenges.