Researchers at the lab, many of whom were at the top of their field, explored technologies such as speech recognition, computer vision and natural language understanding, which are cornerstones in the development of artificial intelligence. Some of the lab’s researchers left for key positions at Chinese tech giants like Alibaba, Baidu and Tencent or helped found start-ups such as Megvii, a facial recognition company that has contributed to a vast national surveillance system in the country.
In 2018, Microsoft said it had invested more than $1 billion in research and development in China over the previous decade. The technical talent and invention from the Beijing lab underpin a key internal argument for supporting it.
But the lab’s success and prestige also attracted attention in Washington, where the White House has increasingly restricted China’s access to crucial technologies, citing national security.
Microsoft’s leaders have discussed how to manage the tensions. Mr. Gates, who is still in regular touch with company executives and supports global engagement, has long backed the Beijing lab, people with knowledge of the matter said. He traveled to China in June and met President Xi Jinping, who told him that he was “the first American friend I’ve met with this year.”