HONG KONG (Realist English). US AI chips made by Nvidia, banned from export to China, have more than doubled in price on the Chinese black market. According to the Financial Times, citing a survey of Chinese traders, Washington’s tightening of export controls has squeezed smuggling channels but failed to stem robust demand from Chinese companies seeking to develop their own artificial intelligence models.
Flagship B300 server rises to $1.1 million
According to the publication, the price of Nvidia’s flagship DGX B300 server, equipped with eight Blackwell graphics processors, has risen from 4 million to more than 8 million yuan ($1.1 million) over the past six months. By comparison, such a system costs about $400,000 in the United States.
An even more significant surge has been recorded for the RTX 6000 Pro workstation — a popular choice among startups deploying large language models. Its black market price has risen from 50,000 yuan at the start of the year to 130,000 yuan. Both models (RTX 6000 and DGX B300) are under a direct export ban to China.
‘Loopholes narrowed, risks increased’
The price rise is a direct consequence of the tightening of export controls by the Trump administration. On May 31, the US Commerce Department closed loopholes that had allowed high‑performance Nvidia chips (including Blackwell and Rubin models) to be supplied to China through foreign subsidiaries.
According to estimates based on supply chain analysis, at least $1 billion worth of Nvidia chips were illegally imported into China in 2025. However, after the tightening of controls, smuggling channels have been significantly reduced.
“Loopholes have narrowed. Trading these chips is becoming increasingly risky for intermediaries as prices rise,” one trader working with large data centres told the FT.
Traders note that supplies were severely disrupted after US authorities stepped up investigations into illegal chip exports at the end of 2025.
In March 2026, Supermicro’s co‑founder and two accomplices were charged with smuggling $2.5 billion worth of Nvidia AI servers — the largest case of its kind in the US. Authorities in Taiwan and Malaysia have also launched investigations into re‑export channels for chips to China.
Chinese companies turn to older models
Faced with shortages, Chinese customers are being forced to diversify their purchases. Traders report that companies are increasingly buying gaming processors that can be repurposed for AI tasks, as well as older A100 accelerators for data centres. One trader noted that A100s are “snapped up as soon as they appear” because “companies have no choice but to buy older models.” The price of servers based on A100 has risen from 200,000 yuan at the end of last year to 600,000 yuan.
Nvidia’s position: a ‘dead end’
Nvidia has warned that trying to build data centres from smuggled components is a “dead‑end path.”
“AI data centres are complex systems, and relying on illegal equipment is impractical,” the corporation said. The company also stressed that it does not provide technical support, maintenance or repair for banned products, and those involved in smuggling could face criminal prosecution.
At the same time, Nvidia said it “has no evidence of chip diversion” and is not aware of sales of banned products.
China accelerates development of domestic alternatives
Beijing, for its part, is stepping up efforts to reduce dependence on American semiconductors. Chinese authorities are encouraging companies to switch to domestic alternatives, and local manufacturers are ramping up production.
Huawei recently unveiled a new AI chip, the Ascend 950PR, which is already being tested by major data centre customers. However, domestic solutions remain limited due to supply shortages and a weak software ecosystem.
Paradoxically, the tightening of US controls has driven up black market prices, which only increases the incentives for smuggling.
At the same time, Chinese companies are being forced to pay twice as much for the same products, while Nvidia is losing revenue from sales that could have been legal.
As analysts note, the black market is becoming an indicator of the ineffectiveness of export restrictions: the tighter the ban, the higher the price and the more attractive smuggling becomes.
