Microsoft debates on keeping the AI lab in Beijing due to the tensions over which nation will lead the world's technological future after being warned by U.S. lawmakers about the potential national security risks its continued operations in China could pose.

Warning on National Security Risk

The warning came after company president Brad Smith highlighted increased tech collaboration during a low-key visit to the Communist country, as The Post reported last month. Senator Josh Hawley expressed that partnerships like this should be prevented. Representative Mike Gallagher, chairman of the House Select Committee on China, warned Microsoft that the Chinese Communist Party (CCP) could use AI for nefarious purposes.

Microsoft Executives' Decision

According to the New York Times, CEO Satya Nadella, President Brad Smith, and other Microsoft executives have discussed whether keeping the AI lab in Beijing is feasible amidst increasing political pressure. Microsoft leaders have explored options such as relocating the lab or shutting it down but have continued its normal operations.

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Risk of Hacking Sensitive Technology Secrets

According to five sources familiar with Microsoft's discussions, leaving the lab open poses potential risks, including the chance of China hacking and obtaining sensitive technology secrets.

Risk of Researchers Joining Chinese Tech Firms

There are also concerns that researchers working at the lab might choose to leave Microsoft and join Chinese tech firms closely linked with the Beijing government.

Executives Supporting China's Lab

Microsoft's co-founder, Bill Gates, has consistently supported the Beijing lab, established in 1998 during his tenure as the company's CEO. The billionaire recently visited China for a meeting with President Xi Jinping.

Smith, who stated last month that Microsoft will be actively involved in China's digital transformation, supports the lab and Microsoft Chief Technology Officer Kevin Scott.

Microsoft Research chief Peter Lee expressed unwavering commitment to the lab and its research team. He clarified that there have been no discussions or proposals to close Microsoft Research Asia, emphasizing their intent to continue their research agenda.

In response, Smith defended the company's position: "The lesson of history is that countries succeed when they learn from the world. Guardrails and controls are critical, while engagement remains vital."

Microsoft's Guardrails

Microsoft has implemented safeguards to prevent Beijing from exploiting the lab's work. These measures involve blocking China-based researchers from accessing early versions of OpenAI's GPT-4 last year and restricting lab-related quantum computing and facial recognition-related projects. Microsoft also refrains from hiring researchers from schools associated with the Chinese military, as reported.

Microsoft has around 10,000 employees in China and has expanded its operations there, unlike other Big Tech rivals like Google and Meta, which are scaling back their regional activities.

In addition to its lab in Beijing, Microsoft has another research lab in Shanghai. Both locations act as hubs for AI research. Last month, a Microsoft spokesperson informed The Post that AI work conducted in China is not intended for military use. Instead, the focus is on expediting scientific discovery and technology innovation to benefit the global academic research community.

 

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