Nvidia’s AI GPUs Hits Price to $70,000 in China

(CTN News) – The People’s Republic of China is experiencing a surge in demand for generative artificial intelligence-based services, leading to soaring prices of GPUs.

Fears that the U.S. government could restrict GPU sales for AI workloads have further exacerbated the situation.

This article delves into the implications of this trend, highlighting the escalating costs of Nvidia’s H800 compute GPUs and A800 GPUs and the challenges Chinese buyers face in obtaining these essential devices.

Rising Prices of Nvidia’s H800 and A800 GPUs in China:

Demand for generative AI-based services has seen a sharp upswing, contributing to the exponential increase in the prices of Nvidia’s H800 compute GPUs in China. Some reports suggest that prices can reach as high as ¥500,000 (approximately $70,000) per unit, making these GPUs exorbitantly expensive and out of reach for many.

The situation worsened when rumors surfaced about potential restrictions on the export of AI and high-performance computing (HPC) products to China. As a result, the price of Nvidia’s A800 GPU jumped 20% to ¥110,000 (around $15,000) practically overnight, leaving buyers grappling with an unexpected financial burden.

Impact on AI Services and Clusters:

Nvidia’s A800 and H800 compute GPUs have become the cornerstone of most AI clusters, with software designed specifically for Nvidia’s CUDA software layer, which exclusively supports the company’s processors. This dependency on Nvidia’s GPUs has left AI service providers and cluster owners vulnerable to supply shortages.

The scarcity of compute GPUs has raised concerns about the degradation of AI services’ quality, potentially jeopardizing businesses over time. Without adequate GPU support, the ability to meet the growing demand for AI products becomes challenging, hindering the expansion and performance of AI services.

Difficulty in Procurement:

Acquiring Nvidia’s A800 and H800 GPUs in China has become daunting. Interested buyers may have to bypass distributors and resellers and directly approach Nvidia China or even the corporate headquarters. The stringent measures required to purchase these GPUs underscore the severity of the supply shortage in the Chinese market.

Nvidia’s Pricing Policy:

Nvidia has maintained a tight-lipped approach regarding pricing its data center GPUs. However, given the market conditions and demand, the reported prices of H800 compute GPUs and A800 GPUs in China should be taken cautiously.

Conclusion:

The rising demand for AI services and fears of potential GPU restrictions have resulted in an unprecedented surge in GPU prices in China. Nvidia’s H800 and A800 compute GPUs have become essential components for AI clusters, leading to supply shortages and excessive costs. This situation poses significant challenges to AI service providers and cluster owners, risking the degradation of their offerings and potential loss of business. As the situation continues to evolve, industry players and policymakers must address the GPU supply constraints to ensure the sustained growth of the AI ecosystem in China.