Although OpenAI is technicallycutting off Chinaand businesses are scrambling to find an alternative, they may not need to do so. According to a report onThe Information,Microsofthas confirmed there is a loophole allowing access to OpenAI’s models using its Azure cloud service.

When OpenAI made its surprise announcement that it would leave the Chinese market effective July 9, companies reliant on the generative and conversational AI models began searching for alternatives. OpenAI had officially prohibited the use of its technology for some time, but developers used VPN services to mask that they were in China and access the models.

China struggles to advance in AI

After OpenAI announced it would cut off access even to those using VPNs, local Chinese companies began trying to fill the void. Tech companies likeTencent, Baidu, and Alibabastarted moving into the market with “migration” plans and discounts. Zhipu, a Chinese large language model (LLM) firm, announced an offer that included training, consulting services, and tokens similar to those used by developers to access OpenAI’s API.

It turns out these alternatives may not be truly necessary yet, thanks to a Microsoft service. Microsoft Azure China, operated as a joint venture with local tech firm 21Vianet, continues to offer OpenAI models. The day after OpenAI announced it would crack down on access to its models from Chinese customers, Microsoft China used its official WeChat account to encourage developers to move their work over to Azure OpenAI.

Jeff Butts

Microsoft contracts with OpenAI to provide the startup’s LLM and other models. Under the terms of the agreement OpenAI has with Microsoft, it gets 20% of any revenue Microsoft generates through selling OpenAI services. ThreeAzure China customers confirmedtoThe Informationthat they still have access to OpenAI’s models.

Of course, Microsoft’s Azure OpenAI offerings will likely intensify scrutiny of the company by U.S. officials. The U.S. government hopes to cut China off from advanced U.S. technology like AI altogether, fearing China might use artificial intelligence to boost its military capabilities. That’s led to tough questioning of Microsoft by such bodies as the House HomelandSecurityCommittee.

The U.S. government’s national security concerns have recentlyled to a bipartisan billto attempt to make it easier to block U.S. companies from selling AI to China. If that bill is signed into law, it’s difficult to say how much longer even Microsoft will be able to keep providing OpenAI services to customers in China.

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Jeff Butts has been covering tech news for more than a decade, and his IT experience predates the internet. Yes, he remembers when 9600 baud was “fast.” He especially enjoys covering DIY and Maker topics, along with anything on the bleeding edge of technology.