Microsoft & Tencent

Microsoft: Microsoft faces accelerated removal of its customized Windows 10 from Chinese state entities, reducing its government-related revenue and signaling further erosion of its position in China. The company still sells AI and cloud services to Chinese firms like ByteDance and Tencent.

Tencent: Tencent also uses Microsoft's AI and cloud services, and while not directly affected by the Windows directive, it operates in an environment of increasing tech localization.

Microsoft: Microsoft is down 20% in 2026, with June its worst month since 2000, due to concerns over aggressive AI spending and vulnerability as a software maker. It plans to eliminate 3,200 Xbox jobs and divest four studios.

Tencent: Tencent sold $1.5 billion of stock in Kuaishou, paring mature internet bets during a pivot to AI.

Microsoft: Microsoft invested in Malaysia — Johor data centres; similar to Amazon, it faces regulatory changes but has resources to comply.

Tencent: Tencent is among Chinese firms that invested in Malaysia — Johor; regulatory tightening may slow its data centre build-out.

Microsoft: Microsoft signed an open letter backing open AI models, aligning with the open-source trend that benefits Chinese models.

Tencent: Tencent is embedding AI in devices, supporting China's AI adoption and global reach.

Microsoft: Microsoft is cited among major U.S. hyperscalers expected to spend heavily on AI capex, highlighting the competitive landscape.

Tencent: Tencent is referenced in the context of a previous large share sale in Hong Kong, providing historical comparison.

Microsoft: Microsoft is mentioned as a comparison point for AI investment, highlighting the scale of global AI spending, but is not directly impacted by China's plan.

Tencent: Tencent' private spending on data centers is not included in the government's plan, but it may benefit from the broader push for AI adoption.