US export controls have caused the price of Nvidia's AI chips to more than double on China's black market. The flagship DGX B300 server, which contains eight Blackwell graphics processing units, now sells for over 8 million yuan ($1.1 million), a sharp increase from 4 million yuan six months ago. This is significantly higher than its typical US retail price of approximately $400,000 to $550,000. This price surge highlights intense demand for advanced AI processors in China despite Washington's efforts to restrict their flow and Beijing's push for domestic alternatives.
The price increases are attributed to a tightened crackdown on illicit exports, particularly following a March 19, 2026, indictment against Supermicro co-founder Yih-Shyan “Wally” Liaw and his associates for allegedly diverting about $2.5 billion in Supermicro servers with Nvidia's export-controlled Blackwell-class AI chips to Chinese buyers. This legal action significantly choked the grey market supply channels that Chinese companies had previously relied on. In addition, the US government's April 9, 2025, requirement for a license to export Nvidia's H20 chip, designed to comply with earlier export rules, effectively closed the last legal avenue for compliant Nvidia hardware into China. Nvidia took a $4.5 billion charge in the first quarter of fiscal 2026 on excess H20 inventory and purchase obligations, indicating the closure of this legal channel.
Despite the exorbitant prices, demand from Chinese AI companies remains strong. These companies are willing to pay the premium because Nvidia's hardware underpins the CUDA software stack and the developer ecosystem, which Chinese engineers are already familiar with. Traders suggest that buyers are structuring purchases to avoid direct exposure to US sanctions, often using less exposed entities or holding companies in locations like Hong Kong. The high prices are not deterring demand but rather tightening Nvidia's grip on the Chinese AI market. Rental costs for a B300 server in China have also mirrored this trend, reaching up to 190,000 yuan per month, making the GPU rental market no longer a cheap option. Older A100-based servers have also seen prices triple since late last year through these illicit channels.
