China’s “all-in-one” AI machines show an alternate path for dissemination of the technology

China is experiencing a notable rise in demand for “all-in-one” AI machines – integrated hardware and software packages with pre-loaded AI models, particularly the open-source ChatGPT competitor DeepSeek. By offering out-of-the-box solutions for local deployment by private enterprises and state-affiliated entities, these machines speed up the adoption of AI in China in the absence of a strong public cloud sector. They also expand the market for domestic equipment makers. 

The offerings range from Huawei’s top-of-the-line machines to more modest ones supporting only “distilled,” or downgraded, versions of DeepSeek. The ability to deploy AI locally, rather than access them through cloud computing platforms, is preferred by sectors such as healthcare, finance, and government, which cannot process data on external cloud servers due to China’s strict privacy, security, and cross-border transfer regulations. 

Using stand-alone AI machines has its limitations. Individual deployments are less scalable, less efficient, and have higher maintenance demands. The fragmentation also complicates the rigorous validation and ethical oversight that AI in sensitive areas requires. Chinese medical researchers already warn that DeepSeek is moving into hospitals “too fast, too soon.” China’s cloud service providers are making large investments in their computing infrastructure to capture the demand for support by AI tools – ultimately large-scale deployments are what data-intensive industries will need. 

In the meantime, the all-in-one machines offer a quick way, especially for small-and-medium sized businesses to try out DeepSeek. Whether or not all of these experiments will endure is an open question, but this is well aligned with Beijing’s “AI+” initiative, which aims to embed AI across the economy. This distinct localized, hardware-adaptive approach could contribute to the flourishing of application developments coming out of China.  

Wendy Chang, Analyst: “The popularity of ‘all-in-one DeepSeek machines’ illustrates the differences between China’s AI deployment landscape and that of the West. Due to stricter data regulations and a smaller cloud sector, many entities in China prefer private solutions. Despite the inherent inefficiencies of this approach, the all-in-one machines are a way to capitalize on the hype around DeepSeek and promote Beijing’s goal of widespread AI integration.”