Prices for Nvidia's AI chips on China's black market have more than doubled, according to sources cited by the Financial Times. The surge comes as a US export crackdown makes it riskier, harder, and more expensive to acquire the tech giant's processors. Its flagship DGX B300 server has risen to $1.1 million.
The black market activity highlights intensifying geopolitical tensions between the US and China over advanced semiconductor access. These tensions are reshaping global tech supply chains and prompting China to boost domestic chip production as a long-term hedge against dependence on foreign technology.
Data from multiple reports indicates the price doubling is a direct consequence of stricter US export controls on AI chips. The Financial Times reported the price increase based on insider sources, while the DGX B300 server's $1.1 million price tag was also cited. No other specific percentage or dollar figures were provided beyond these figures.
The implications are significant for both US chipmakers like Nvidia and Chinese AI firms seeking high-performance hardware. For Nvidia, the black market premium creates reputational and compliance risks. For China, the price spike reinforces its push for self-reliance in chip manufacturing, though near-term development may slow.
One counter argument suggests the price surge may be temporary, as Chinese buyers could shift to alternative suppliers or older chip designs. Additionally, stricter enforcement may eventually shrink the black market, reducing price volatility.