Microsoft continues OpenAI services in Hong Kong amid new API restrictions

Microsoft’s decision contrasts with OpenAI’s, potentially pushing Chinese developers towards local AI platforms.

a red and white flag

Microsoft has stated it will keep providing eligible customers in Hong Kong with access to OpenAI’s AI models, like ChatGPT, via its Azure cloud platform. The decision stands despite OpenAI’s recent move to restrict API access from unsupported areas, including mainland China and Hong Kong.

OpenAI, with Microsoft as its biggest investor, notified developers in unsupported regions that it would begin blocking API access on 9 July. That step aligns with the US government’s efforts to curb China’s access to advanced AI technology due to national security concerns.

Microsoft’s local branch assured there will be no changes to their Azure OpenAI service offerings in Hong Kong. Although OpenAI’s services are not officially available in mainland China and Hong Kong, users in these regions often circumvent restrictions using virtual private networks or proxies.

Why does this matter?

The restriction by OpenAI aligns with broader US efforts to limit China’s access to advanced technology, reflecting ongoing tensions and strategic competition between the US and China. Microsoft’s decision to maintain services in Hong Kong contrasts with OpenAI’s broader restrictions, potentially pushing Chinese developers toward local AI platforms such as Zhipu AI, Baichuan, and those from major tech companies like Alibaba and Baidu. These local alternatives offer incentives to attract users impacted by OpenAI’s new policies.