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In July 2020, following OpenAI's release of GPT-3, Microsoft spun off Shao Ice as an independent company with Li Di appointed as CEO. The transition faced challenges, notably around the identity of Shao Ice as it shifted from being a part of Microsoft. Shao Ice, born from Microsoft China, struggled with identity dilemmas tied to its American roots. The company's delayed adoption of large models led to key scientists leaving, impacting its progress and competitive edge.