Microsoft has built a substantial business by selling artificial intelligence models to Chinese tech giants, including ByteDance, Ant Group, Meituan, and Tencent, according to Bloomberg, citing people familiar with the matter. ByteDance has been Microsoft’s largest AI customer in recent years, primarily using OpenAI’s model, with annual spending on Microsoft’s AI and cloud services exceeding US$1 billion. Other firms, including Ant Group, Meituan, and Tencent, are also spending heavily on AI models through Microsoft’s Azure cloud services, with most spending directed toward supporting business expansion outside of China. An Ant Group spokesperson said the company develops its own AI models and does not rely on external models for its core products. Microsoft reportedly believes that having a presence in China helps it keep pace with local innovation and serve multinational clients. With its unique partnership with OpenAI, Microsoft has established its own policies for selling AI models such as the GPT series in China, while excluding models such as Anthropic, and offers these models for applications from software development to customer service automation.