Nvidia’s $1 million problem is getting worse in China
Nvidia's B300 AI servers are selling for approximately $1 million in China, about twice the price of similar equipment in the U.S., due to growing demand for Chinese AI, tightened U.S. export restrictions, and a crackdown on chip smuggling. Chinese AI models made up 32% of worldwide token use in March 2026, up from 5% a year earlier.
Nvidia's B300 AI servers are selling for around $1 million in China, roughly double the U.S. price of $550,000. The high demand for AI in China, combined with U.S. export restrictions and a crackdown on chip smuggling, has led to a supply shortage. Chinese AI usage is surging, with models accounting for 32% of global token use in March 2026, up from 5% the previous year. Some corporations are opting for rentals due to sanctions concerns, with short-term leases costing up to 190,000 yuan per month. Nvidia's market share in China is over 55%, but local chip producers like Huawei are challenging its dominance. The company's ecosystem of hardware, software, and developers is a significant advantage, but high prices and limited availability may drive buyers to alternatives.
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