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China’s ‘AI-in-a-box’ products threaten Big Tech’s cloud growth strategies

Huawei leads trend of providing companies with means to power their own artificial intelligence apps rather than through public cloud

China’s artificial intelligence groups are selling “AI-in-a-box” products for companies to run on their own premises, in a threat to the AI cloud computing services offered by the country’s big tech groups such as Alibaba, Baidu and Tencent.

Huawei has signed up more than a dozen AI start-ups to bundle and market their large language models with its AI processors and other hardware. Its partners include groups such as Beijing-based Zhipu AI and language specialist iFlytek.

Chinese groups are deploying the boxes to bring the advances of generative AI to on-premise, or private cloud, set-ups, which account for about half of the cloud market in the country.

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