OpenAI to Restrict Chinese Users' Access to AI Models, Microsoft Azure Exempted OpenAI is set to prohibit Chinese users from accessing its artificial intelligence models through its application programming interface (API), but this restriction does not apply to Microsoft Azure customers in China. According to a report by Seeking Alpha on Monday, Azure operates in China through a joint venture and explicitly stated in a public statement that its AI models are available to Chinese customers, citing a paywalled article from The Information. OpenAI is reported to block Chinese users from accessing its API starting from Tuesday, July 9. PYMNTS reached out to a Microsoft spokesperson who stated that there have been no changes to the availability of Microsoft Azure OpenAI services in China. The company continues to provide services to eligible Chinese customers through models deployed outside of China. OpenAI, as an independent company, will make its own decisions. A report on June 25 revealed that OpenAI plans to take additional measures to restrict Chinese access to its AI software by implementing its existing policy of prohibiting users from countries or regions not supported by the company. Bloomberg noted that OpenAI supports access to its services in dozens of countries or regions, and its guidelines state that if someone from an unlisted country or region accesses its products, their account may be blocked or suspended. Although OpenAI's ChatGPT is not available in mainland China, the company still allows Chinese businesses to build their own applications through its API platform. "We are taking additional measures to block API traffic from regions where we do not offer OpenAI service support," said a spokesperson from OpenAI. In January, the Biden administration issued strict regulations to major cloud service providers, including Microsoft, requiring them to identify and actively investigate foreign customers developing AI applications on their platforms. The Biden administration has also been working to limit China's access to advanced semiconductors. The rapid development of artificial intelligence (AI) and other next-generation technologies in China has become a major concern for the Biden administration, as the United States sees China as a major strategic competitor. According to a recent report by the World Intellectual Property Organization (WIPO), China has become a dominant force in generating AI patents, with the number of such patents submitted being more than six times that of the United States.