Prices for Nvidia’s advanced B300 servers in China have surged sharply, nearing 7 million yuan (around $1 million), as strong demand for artificial intelligence computing equipment collides with tightening supply.
The increase reflects a near doubling from around 4 million yuan late last year.
As per the sources cited by Reuters, the rise accelerated after a crackdown on chip smuggling disrupted the grey market, which had been a key supply channel for restricted hardware.
The B300 server is among Nvidia’s most powerful systems for AI workloads.
Prices had already been climbing earlier this year, but tightened enforcement significantly reduced availability, pushing costs higher.
Grey market crackdown tightens supply
The surge in prices is closely linked to efforts to curb illegal chip diversion.
Nvidia confirmed that the B300 is restricted from sale in China and stressed strict compliance requirements for its partners.
“As systems become increasingly large and complex, unlawful diversion is a recipe for failure,” Nvidia said in a statement, as cited in a Reuters report.
The company added, “Nvidia does not provide any service or support for such systems, and the enforcement mechanisms are rigorous and effective.”
The crackdown has reduced black-market supply, forcing buyers to pay a premium for limited availability.
Strong AI demand adds to price pressure
Robust demand from Chinese technology firms is also contributing to the price surge.
Companies are seeking high-performance computing power for AI model deployment but are cautious about directly holding Nvidia hardware due to potential exposure to US sanctions.
This has led to a situation where demand remains strong even as supply tightens, amplifying the scarcity premium.
In some cases, companies priced out of direct purchases are turning to rentals.
The rental costs have climbed to as high as 190,000 yuan per month on short-term contracts.
Export curbs and geopolitical tensions weigh
The supply crunch is further linked to tighter US export controls.
A B300 server, which contains eight GPUs, is priced at about $550,000 in the United States, up from roughly $500,000 late last year.
The disparity between US and China pricing highlights the impact of export restrictions.
The scarcity premium in China has been intensified by these curbs.
Uncertainty around exports of Nvidia’s H200 chips has also contributed to the surge.
Despite approvals from both governments, shipments to China have yet to begin, as the two sides remain divided over conditions governing the sale.
Rising competition and growing AI usage
Chinese firms are rapidly expanding their AI capabilities.
A note from Morgan Stanley showed that Chinese AI models nearly tripled their share of global token usage to 32% in March 2026 from 5% a year earlier.
Companies such as MiniMax, Zhipu, and Alibaba’s Qwen reported significant increases in token usage, with growth of six to seven times in early 2026.
At the same time, domestic players like Huawei are seeking to capitalise on supply constraints to challenge Nvidia’s dominant position in China’s AI chip market.
Despite rising competition, Nvidia continues to hold a leading market share of around 55% in China, while AMD accounts for a much smaller portion.
The combination of surging demand, restricted supply, and geopolitical tensions continues to reshape the AI hardware market in China, driving prices to unprecedented levels.
The post Nvidia B300 server prices in China surge amid supply crunch appeared first on Invezz