Microsoft Shutters Shanghai AI Lab, Signaling Broader Retreat from China
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, established in 2019 to help with domestic development of Internet of Things (IoT) and artificial intelligence (AI) technologies, likely closed in January or February, according to nearby workers.

During a recent visit by the South China Morning Post, the lab was found dark and unoccupied, with its logo removed and office equipment cleared out. The area, known as Zhangjiang AI Island, houses offices of several Big Tech firms, including German chipmaker Infineon Technologies and Chinese internet search giant Baidu.
Other companies in the area include US-sanctioned facial recognition firm CloudWalk Technology, data service provider Winner Technology, and aeroplane manufacturer Commercial Aircraft Corporation of China. Microsoft did not immediately respond to a request for comment.
The closure of the lab is seen as part of Microsoft’s broader pullback from China, a move influenced by increasing geopolitical tensions between the US and China. This development comes as major tech companies navigate their operations in China amidst the complex geopolitical landscape.