OpenAI and Google's China Scandal

Western tech companies are letting China screw them. And the rest of the world. Welcome to China Uncensored, I'm Chris Chappell. Be sure to leave a honeypot emoji in the comments below for the algorithm and to honor everyone's favorite pooh bear. And check back every Monday, Wednesday, Friday, and Sunday for new episodes. So, the US and China are in a tech race to see who will come out on top and dominate the world. For now, the US is on top. Especially when it comes to AI slop. But China is catching up. And you know who China has to thank? American tech companies. US companies have helped China become what it is today, including its digital police state. Oftentimes with the US government's help. These days, people are waking up to how dangerous China really is. And yet despite increased global scrutiny against China, American tech companies are still helping China with the latest and greatest technologies, including AI. Why? Oh right, of course. The Financial Times recently reported that OpenAI and Google have been selling AI models to blacklisted Chinese companies. More specifically, they've been selling AI services to Singapore-based subsidiaries of Alibaba, Baidu, and Tencent. Companies that the Pentagon has blacklisted for their involvement with the Chinese military. But they don't care about it being blacklisted. They don't see color. Even though black is technically the absence of color, so you wouldn't see that as a color. Point and joke is, the only color they see is green. Although UN aren't green. So the point is, they only care about money. While it doesn't necessarily mean those companies are sanctioned, the blacklist is a warning to the world that doing business with these companies is not a good idea. And it's a really terrible idea on multiple levels. For one, there's the national security issue. Chinese companies are subject to Chinese Communist Party laws that say they have to give any and all data they have collected to the government at a moment's notice. Meanwhile, the US government, which gives American companies a lot of freedom to handle business the way they want, often partners with those companies, with questionable results. Like that time Microsoft allowed engineers in China to access sensitive Pentagon systems. Which is forgivable, since it was obviously a mistake they immediately rectified before any harm was done, is what I'd be saying if it wasn't going on for over a decade! But on top of that, partnering with China is just a terrible business move. Look at what's happening to NVIDIA. NVIDIA CEO Jensen Huang has simped hard for China. He not only pushed for chip exports to China, he also showered it with praise. He's like one of those edgelords that say Griffiths did nothing wrong, but actually mean it and will corner you at a party to explain why. He even called the ChinaHawk label a badge of shame. Honestly, if I was a Scoutmaster, the ChinaHawk badge would be the highest honor that you could get only after becoming an Eagle Scout. So what was China's response to Huang's glazing? The CCP unveiled a $295 billion state-directed AI build-out and locked NVIDIA out. Focusing instead on local Chinese companies to boost China's AI sector. Then there's Elon Musk. Musk praised China's economy and infrastructure, encouraged people to visit China, called China awesome, and promoted pro-CCP talking points about Taiwan and said he's kind of pro-China. China's response? Thankfully, it isn't as dramatic as what they did to NVIDIA. They just politely told Musk their time is at an end. And psych! They're thinking of ways to destroy Musk's Starlink satellites. Yes, they're thinking about blowing up satellites. I hope they announce who the next James Bond is soon, because we're going to need him to stop these supervillains. China's also copying Tesla's cars and manufacturing process, with 70% more fire. OpenAI in particular should seriously know better than get involved with any Chinese companies or even subsidiaries after they said China's DeepSeek trained its AI by distilling US models. And yet, while OpenAI doesn't allow access to its model in China, it admitted that some companies with Chinese ownership or headquarters use its AI tools. Which is like a security company telling you that no criminal will get into your house assuming they don't use the criminal entrance they installed. Google, meanwhile, said its AI services continue to be available in Hong Kong and Singapore. At least they don't try to lie about being complete idiots. Progress? Google says both regions are subject to restrictions against distillation, where one AI trains off the learned behavior of another, basically theft. The problem is, geographic sale restrictions against distillation are very easy to circumvent. Everybody using AI, including Google, knows it. Yet Google still allows AI services to run in Hong Kong and Singapore anyway. Meaning they are lying about being complete idiots. No progress. This is the same Google, by the way, that owns YouTube, which is absolutely crushing this channel for its Chinese overlords. As much as some AI companies like Anthropic try to close loopholes, many Western tech companies are so fixated on profit that they will risk exposing themselves to China if it means gaining access to markets and cheaper labor. Which brings us full circle. Because it's not just OpenAI and Google that are selling AI models to Chinese companies. It's also OpenAI's partner Microsoft. Yes, the same Microsoft that allowed Chinese engineers to access the Pentagon. Microsoft has been selling OpenAI models to TikTok's owner ByteDance, Microsoft's biggest AI client in recent years, along with Ant Group, Meituan, and Tencent. And Microsoft isn't ashamed of it. I know, I'm shocked the company founded by Jeffrey Epstein's buddy Bill Gates would be shameless. In an internal sales meeting in July 2025, then-Chief Commercial Officer Judson Althoff said, the world's most elite AI solutions are being built on the western coast of the United States and the eastern coast of China. And the one company bringing those two places together is Microsoft. It's pretty awesome. On what planet is it awesome to be empowering a regime that uses rape as a form of torture? This is serious. Which is why I'm desperately fighting the urge to make the joke that that planet is probably Uranus. In fact, OpenAI has complained to Microsoft that it isn't doing enough to prevent Chinese companies from copying its models. Microsoft's response? Who knows, according to people familiar with the matter, customers in China are not subject to any heightened monitoring by Microsoft on their use of AI models. It's the only situation where people in China aren't subject to monitoring. To make matters worse for all of us who use Windows, Axios reported that Microsoft is considering using a Chinese AI model inside your office software. Specifically DeepSeek. Do you know how evil you have to be for Apple to look like the good guys? Sure, they are basically using slave labor from China, but at least they had standards, you know. But Microsoft isn't the only company looking to cut costs by turning to Chinese AI. Western companies like DoorDash, Siemens, and Airbnb are turning to Chinese AI models to cut costs. And yet the meal I ordered from DoorDash is still like 100% markup. But I'm sure they'll pass those savings on to the customers. You have any day now. Meanwhile, the CCP is weighing limits on the AI models American companies love. In order to protect their technology that they stole from American companies that chose to do business with them. The moral of the story is that doing business with China will come back to bite you. Again and again and again. It's time for American companies to learn their lesson and help America win the tech race instead. After all, sure, they're obviously winning right now, but for how much longer? Now if only tech companies actually watched my show rather than suppressing China Uncensored on YouTube. So if you want to join me in deleting communism for good, please join my 50 cent army by signing up to my website ChinaUncensored.tv. When you subscribe, you'll get access to a vibrant chat community, exclusive live streams, and special deep dive episodes made just for my 50 cent army. Just click this button here or the link below. Once again, I'm Chris Chappell. Thanks for watching.