Chinese AI Companies Flood Market with NVIDIA RTX 4090D GPUs to Take Advantage of Soaring Prices

Recent developments have revealed that China’s artificial intelligence market is now actively retailing NVIDIA RTX 4090D GPUs. This strategic move aims to capitalize on excess computing capacity and improve profit margins amid changing demand dynamics.

Shift in AI Demand: China’s Firms Liquidate GPU Inventory

The surge of AI innovation in China, unlike other global markets, was heavily dependent on creative hardware solutions due to the initial lack of advanced chip technology. To enhance their AI capabilities, Chinese companies modified consumer-grade GPUs, such as the RTX 4090D, by increasing the onboard VRAM to boost performance. However, a report from DigiTimes indicates that the ongoing decline in demand for AI-enabled operations has led these firms to sell excess GPU inventories in hopes of securing profit.

Current market analysis shows that many AI companies are experiencing server utilization rates plummeting to as low as 20%.With diminished demand, it has become crucial for these organizations to offload surplus computing resources to maintain profitability. On top of that, the recent uncertainty in China’s supply chain, exacerbated by US export restrictions, compels these firms to adapt quickly, taking advantage of the soaring GPU prices.

The price for the NVIDIA RTX 4090D 48 GB has climbed to approximately $6, 000 in local markets. With the influx of inventory from AI firms, a decline in prices is anticipated, offering relief to domestic consumers. However, it may take considerable time before the pricing returns to levels observed prior to the AI boom. It has become apparent that many of these AI enterprises have realized the reduced need for extensive computational power to meet the current market demand. Notably, it has been reported that over 80% of China’s AI computing resources are currently inactive, reflecting a significant shift in resource allocation.

The ongoing GPU availability situation in the Chinese market is particularly intriguing, especially considering that just weeks prior, acquiring these models at reasonable prices was a daunting task.

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