Microsoft has significantly expanded its business in China by selling OpenAI models to local enterprises, according to sources cited by Bloomberg. This move comes as competition between the U.S. and China in artificial intelligence intensifies. ByteDance, a major player in the Chinese tech industry, has emerged as one of Microsoft's largest AI customers, leveraging OpenAI models extensively. In a related development, ByteDance's annual spending on AI is projected to surpass $1 billion, highlighting the company's commitment to advancing its AI capabilities. This substantial investment underscores the growing importance of AI technology in the competitive landscape of global tech giants.