Nvidia’s AI Chips Double in Price in China as It Tackles AI’s Water Problem

• Nvidia’s AI chips are reportedly selling at record prices in China as US export restrictions tighten supply
• Strong demand from Chinese AI firms continues to drive a black-market premium for Nvidia hardware
• Nvidia also unveiled a new cooling system designed to dramatically reduce data center water use

The harder it becomes for Chinese companies to get their hands on Nvidia’s AI chips, the more valuable those processors appear to become. China’s strong AI demand has kept prices climbing, with China’s black market emerging as a key source for restricted Nvidia hardware. At the same time, Nvidia remains central to the AI conversation in China. This comes even as Nvidia revealed its new cooling system designed to reduce water use in data centers.

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Nvidia’s AI Hardware Is Becoming Scarcer and More Expensive in China

According to a recent Financial Times report, prices for several restricted Nvidia’s AI chips have surged. This comes as US authorities intensify efforts to block advanced AI chip exports to China.

Among the most striking examples is Nvidia’s DGX B300 server, a flagship AI system powered by eight Blackwell GPUs. Chinese traders told the publication the server is now selling for more than 8 million yuan ($1.1 million). This is roughly double what it fetched six months ago. The figure also sits well above its US retail price.

The price surge is not limited to large-scale data center equipment. Nvidia’s RTX 6000 Pro workstation chip is widely used by startups building large language models and AI applications. It has also become significantly more expensive as supply channels tighten.

Several from the industry said the squeeze has intensified after authorities increased scrutiny of suspected chip-smuggling networks. Taiwan and Malaysia have also stepped up enforcement around re-export routes that previously helped restricted hardware reach Chinese buyers.

Despite all this, demand remains resilient. Chinese technology firms continue investing heavily in AI infrastructure as competition around generative AI accelerates. This imbalance between supply and demand is creating a scarcity premium that keeps pushing prices higher.

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The Jensen Huang Firm Is Also Tackling AI’s Infrastructure Challenge

Amidst this ongoing issue, the company is focused on another issue surrounding the AI boom, which is data center sustainability.

This week, Nvidia unveiled a new liquid-cooled infrastructure design that it says can eliminate “pretty much all water usage” inside AI data centers. The closed-loop system uses a coolant mixture that can operate at temperatures as high as 45°C. It is reducing the need for traditional cooling methods. Andrew A. Chien, a professor at the University of Chicago, said,

“It’s super important to push it up, because in many cases it allows you to do that cooling, that exhausting of heat to the outside environment, without running HVAC units, without running air conditioners. Because if it’s cool enough outside, you don’t need to.”

The announcement comes as concerns around AI’s environmental footprint continue to grow. Earlier this month, the United Nations warned that AI-related water consumption could reach levels equivalent to the annual needs of 1.3 billion people by the end of the decade.

On one side, Nvidia’s AI chips are becoming one of the most sought-after commodities in China’s AI race. On the other hand, the company is trying to ensure the infrastructure powering that race can scale without placing even greater strain on resources.

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