Nvidia AI chip prices are reaching new heights in China following two major factors. The first is a strong demand for AI semiconductors among Chinese companies, and the second is the ongoing US-China tech tensions + export restrictions.
Financial Times reported that certain Nvidia AI chip products, specifically banned in China, are seeing a significant increase in their prices. As per the details, these semiconductor rates have been doubled compared to the actual cost.
Some traders noted that the new hike in Nvidia AI chip prices is primarily due to tightened US export controls and enforcement, which reduced the chipset supply.
“The loopholes have shrunk. It is becoming more and more risky for intermediaries to trade these chips as prices have surged,” as per one of the traders.
Speaking of the products, Nvidia DGX B300 AI server, RTX 6000 Pro, and RTX 6000 are some of the products that are mainly affected by the new price adjustment.
DGX B3000 server has also increased by more than $1.1 million in the past six months. It consists of eight Blackwell graphics processing units, costing nearly $400,000 in the US.
On the other hand, Nvidia RTX 6000 Pro has reached 130,000 yuan, up from 50,000 yuan. Notably, both AI servers are banned for China sales due to the US sanctions.
The current price hike indicates that the US is now targeting China’s black market that used to supply banned chips to native companies. It also hints that Nvidia chips still hold strong value despite China’s effort to rely on its own products.
Apart from the US, Taiwan and Malaysia-based governments are also trying to scrutinize chip smuggling operations on popular routes for re-export to China.
Nvidia spokesperson said:
“AI data centers are massive and complex – building out of contraband is extremely difficult, and we do not provide any support or repairs for restricted products. Our compliance efforts have repeatedly stopped would-be smugglers, who risk prosecution on both sides of the globe.”
(Image Credits: Nvidia/X)
