Microsoft Closes Shanghai AI Lab Amid Broader China Retreat
Microsoft has shut down its IoT & AI Insider Lab in Shanghai’s Zhangjiang hi-tech zone, signalling a continued pullback from China as geopolitical tensions rise.
The lab, which opened in May 2019, was designed to support the development of Internet of Things (IoT) and artificial intelligence (AI) technologies in China. It closed earlier this year, according to workers in the Zhangjiang AI Island area.
During a recent visit, the facility appeared empty, with its logo removed and office equipment cleared out. Nearby workers said the closure occurred in either January or February.
The 2,800-square-metre lab was a flagship collaboration between Microsoft and Zhangjiang, the innovation hub of Shanghai’s Pudong district. It was part of a broader effort to integrate scientific research resources and support enterprise innovation.
In 2021, the lab was selected for the Group Open Innovation initiative, a government-led programme aimed at boosting local innovation and attracting investment.
By its fifth anniversary last June, the lab had supported 258 projects involving nearly 100 companies. More than 50 of these enterprises attracted over CNY 9.4 billion (USD 1.3 billion) in external investments.
The lab also achieved 139 technological outcomes and trained nearly 10,000 professionals, according to an official report from Zhangjiang.
Microsoft operates similar labs in Seattle, San Francisco and Milwaukee in the US; Munich, Germany; Montevideo, Uruguay; and Kobe, Japan.
The closure follows other signs of Microsoft’s retreat from China. Last May, the company offered relocation options to 700 to 800 China-based AI staff and initiated large-scale lay-offs.
Last year, Microsoft also closed all its authorised physical retail stores on the Chinese mainland.
Company President Brad Smith said during a congressional hearing last year that China accounted for only about 1.5% of Microsoft’s global revenue.
Microsoft closed its Shanghai IoT & AI Insider Lab earlier this year
The lab supported 258 projects and trained nearly 10,000 professionals
Over 50 supported companies attracted USD 1.3 billion in investments
Source: SCMP