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Microsoft shutters AI lab in Shanghai, signalling a broader pullback from China

The IoT & AI Insider Lab in the Zhangjiang hi-tech zone likely closed in January or February, nearby workers say

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Microsoft has closed its research lab in Shanghai’s Zhangjiang hi-tech zone, and has already removed its logo from the entrance. Photo: Wency Chen
Wency Chenin Shanghai
Microsoft has closed its IoT & AI Insider Lab in Shanghai’s Zhangjiang hi-tech zone, marking the latest sign of the US tech giant’s retreat from China amid rising geopolitical tensions.
The Shanghai lab, meant to help with domestic development of the Internet of Things (IoT) and artificial intelligence (AI) technologies, closed earlier this year, according to people who work in the Zhangjiang AI Island area.

The lab was dark and unoccupied during a recent visit by the South China Morning Post, with the logo removed and office equipment cleared out.

The area houses the offices of several Big Tech firms, including German chipmaker Infineon Technologies and Chinese internet search giant Baidu.

Other offices include US-sanctioned facial recognition firm CloudWalk Technology, data service provider Winner Technology and aeroplane manufacturer Commercial Aircraft Corporation of China. Nearby workers said the office closed in either January or February.

Microsoft did not immediately respond to a request for comment on Monday.

Microsoft’s now-closed IoT & AI Insider Lab seen in Shanghai on March 31. The tech giant opened the facility in 2019. Photo: Wency Chen
Microsoft’s now-closed IoT & AI Insider Lab seen in Shanghai on March 31. The tech giant opened the facility in 2019. Photo: Wency Chen
Wency tells stories that explore how technologies are reshaping society, with a focus on cross-border e-commerce, AI, the supply chain and others. Before joining SCMP, Wency contributed to KrASIA, Wired, Rest of World, World of Chinese, Tech in Asia, Vice China (BIE), Harper's Bazaar, etc. She attended Columbia Journalism School.
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