The AI model accessed the internet and guessed credentials to three websites, a Google official told the BBC.
In text exchanges and conversations, multiple people who have worked for leading companies are sceptical of the warnings.
The news comes as part of a “reset” announced by Xbox in July, with 3,600 planned job losses overall.
The BBC is in Inner Mongolia where dozen of Chinese data centres are being constructed, as the country aims to lead the world in artificial intelligence.
The BBC visits Inner Mongolia, where Beijing’s AI infrastructure is progressing at “China speed”, says one worker.
To save power and add capacity, data centres are switching from copper wires to tech using light.
Under the draft laws, tech firms face fines if they do not give users the option to switch off algorithms.