NVIDIA Sells its Cut-down AI GPUs at Remarkably High Prices in China

Written by Boldson on 28 July 2023. Posted in Hardware

As the demand for AI GPUs such as NVIDIA's H800 model drastically increases in China, there has been a significant hike in their prices. Major companies like Alibaba and ByteDance are actively purchasing these GPUs for their server applications, leading to a market shortage. Rumor has it that ByteDance has acquired NVIDIA's AI GPUs worth about $1 billion.

NVIDIA has been selling cut-down versions of its H100 and A100 GPUs in China as a workaround to US sanctions. Despite their lower performance, these GPUs are extremely popular in the Chinese market. The prices for the A800 and H800 models have reached record levels of 500,000 yuan, nearing $69,000.

But that's not all. As it turns out, NVIDIA also sets its product prices based on "relationships" with clients. Having "good relations" with NVIDIA's CEO Jensen Huang can play a role in making substantial orders.

All of this has been made possible thanks to NVIDIA's monopoly in the field of AI GPUs. However, in light of the rapidly evolving industry and the emergence of new competitors, such as Intel with their "Gaudi2 AI Accelerators", this "monopoly bubble" may burst at any moment.