Microsoft Expands Sales of OpenAI Models to Chinese Firms via Azure

Microsoft has built a large business selling OpenAI models to Chinese companies through Azure, even as US-China AI competition intensifies. According to a report published by Bloomberg on June 17, 2026, ByteDance, which operates TikTok, has become one of Microsoft's largest AI customers and has primarily relied on OpenAI's models in recent years. Citing people familiar with the matter, the report says ByteDance is spending at a pace exceeding $1 billion a year on Microsoft's AI and cloud services.