Microsoft retreats from China but keeps AI window

Microsoft has closed at least 15 China branches and joint ventures in five years, while China accounted for just 1.5% of global revenue in 2024. Reuters reporting carried by TimesLIVE says Microsoft is retaining a narrow AI and cloud window for Chinese companies serving overseas customers even as export controls and domestic-software policy limit its upside. For builders, the signal is geographic: Microsoft’s model-choice thesis now sits inside a market where access, model supply, and compliance can matter as much as price.