US company OpenAI blocks access to its artificial intelligence tools in China

ChatGPT developer OpenAI is discontinuing access to its application programming interface platform, which programmers use to create their own artificial intelligence applications, in mainland China and the Hong Kong and Macau Special Administrative Regions.

Starting July 9, OpenAI will take additional measures to block API traffic in regions not on its list of supported countries, the San Francisco-based company said in an email sent to users yesterday. The list includes 188 countries and regions, but does not include China, Hong Kong and Macau.

OpenAI likely made the move after taking into account many factors such as legal compliance and data security, the report said. On June 22, the U.S. Treasury Department proposed restrictions on U.S. investments in Chinese AI, semiconductors, quantum computing and other high-tech fields.

ChatGPT is not available in the mainland, and OpenAI does not allow Chinese users to directly sign up and use its services, the report said, citing a market insider. The two main ways Chinese users use OpenAI are by connecting to the OpenAI API and gaining access through Microsoft Azure.

According to the insider, the move will affect companies that want to use OpenAI's API to develop their own artificial intelligence programs. Firms that do not quickly find an alternative will find themselves uncompetitive and will be forced out of the market.

The ban will encourage Chinese developers of large language models to accelerate R&D, and more startups are likely to choose domestic LLMs to avoid future risks.