By Li Panpan

(JW Insights) Aug 2 --The price of Nvidia's H800 compute GPU can reach as high as RMB500,000 (about $70,000) per unit, and it's still hard to get this GPU, even at this pricing, reported Tom's Hardware on July 29.

Demand for generative artificial intelligence-based services and fears that the U.S. government could restrict sales of GPUs for AI workloads continues to drive up prices in China.

Last month the price of Nvidia's A800 GPU, which is used for artificial intelligence (AI) and high-performance computing (HPC) applications, jumped 20% to RMB110,000 ($15,000) practically overnight after rumors that the U.S. government can restrict exports of such products to China emerged.

Now, Nvidia's A800 and H800 compute GPUs can reach RMB120,000 ($16,800, presumably for A800), RMB250,000 ($34,970), RMB300,000 ($41,970), and even RMB500,000 ($69,950, presumably for H800), reported Tom's Hardware.

But even if one has the money to pay for China-oriented A800 and H800 GPUs — cut-down versions of Nvidia's A100 and H100 compute GPUs with reduced performance and scalability — it may be impossible to obtain one of these devices. Instead of buying from a distributor or reseller, one may need to talk directly to Nvidia China or even Nvidia corporate headquarters, the report says.

Washington has effectively declared economic war against China, said Christopher Wood, global head of equity strategy of Jefferies, adding that, Nvidia's performance after the report of restrictions is a testimony to the resilience of the AI supply chain story, reported Seeking Alpha on July 4.

And "the later the new planned measures are implemented, the more precious time Chinese companies have to load up on chips which they will take full advantage of to stock up on precious inventory," he said.