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Tight GPU supply reportedly prompts Chinese firms to raise AI server prices

Amanda Liang, Taipei; Rodney Chan, DIGITIMES Asia 0

Credit: DIGITIMES

Inspur and other Chinese server companies have raised their AI server prices to reflect the limited availability of Nvidia's GPUs, according to media reports from China.

There were already reports from China as early as April saying that Inspur would raise its AI server prices by about 20%, a decision made in the wake of Nvidia terminating supply of its top-notch A100 and H100 chips to China.

Sources familiar with the business of Sugon, a China-based supercomputer manufacturer, have recently also confirmed that the company's AI server prices have increased, but they did not specific the extent of increase, according to Chinese media outlet The Paper.

Some other sources said server suppliers have only raised the prices for Nvidia AI servers, and the prices for other server products have not changed.

According to data from Pacific Securities, the top-8 server supplies accounted for 92% of China's AI server market in 2022, with Inspur being the leader with 37%.

According to Inspur's financial disclosure, Nvidia has been a major chip supplier. In 2019, Intel and Nvidia were the top-two chip sources for Inspur.