NVIDIA Chips Selling for Double the Price on China's Black Market

Despite strict export restrictions imposed by the US, Chinese technology giants continue to acquire NVIDIA chips through illegal means to develop artificial intelligence (AI) systems. According to Financial Times, the price of servers equipped with NVIDIA chips on China's hidden markets has reached twice the official prices in the US. This is reported by Ixbt.com news reports.

Specifically, servers based on NVIDIA's latest B300 architecture are valued at approximately 7 million yuan (or 1 million dollars) through illegal channels. For comparison, the same products are twice as cheap in legal US supply chains. This situation demonstrates how acute the deficit of high-performance computing power is in China.

Sanctions and Sharp Price Increases

New regulations introduced by the US Department of Commerce at the end of May this year have further complicated the situation. These restrictions have nearly stopped previous workarounds, including the entry of advanced chips like Blackwell and Rubin into China via foreign structures. As a result, along with the increased risk of delivery, prices have skyrocketed.

According to expert calculations, up to 1 billion dollars worth of NVIDIA chips could be smuggled into China in 2025 alone. Although new bans have not completely stopped the flow, they have significantly complicated logistics chains. Nevertheless, Chinese companies are ready to purchase these chips at any price to avoid falling behind in the AI race.

Striving for Local Production

While NVIDIA products remain the global standard for training AI models, the Chinese government and private sector are allocating huge funds to develop their own semiconductor industry. The goal is to reduce dependence on US technologies and protect against external restrictions.

For example, Nio Vice President Ma Lin noted that the company has been using NVIDIA chips for several years, with annual purchases reaching 300 million dollars. However, due to constant restrictions and risks, Nio has decided to create its own chips. This trend is also being observed in other Chinese technology corporations.

In conclusion, the flourishing 'black market' around NVIDIA chips is a clear example of global technological confrontation. For Chinese developers, these chips have become not just hardware, but a strategic resource ensuring future competitiveness. Therefore, even a twofold price increase does not seem to stop them.