Chinese AI Data Centers Sell Idle RTX 4090D GPUs Amid Market Shifts

Curated by THEOUTPOST

On Thu, 24 Apr, 12:04 AM UTC

3 Sources

Share

Chinese AI data centers are refurbishing and selling Nvidia RTX 4090D GPUs due to overcapacity and low utilization rates, with 48GB models fetching up to $5,500 in the market.

Chinese AI Data Centers Offload Excess GPU Capacity

In an unexpected turn of events, Chinese AI data centers are reportedly selling off their stocks of Nvidia RTX 4090D GPUs, including modified 48GB versions, due to overcapacity and declining demand. This development highlights the complex dynamics of China's AI industry amidst global supply chain challenges and regulatory pressures.

Market Dynamics and Pricing

The resale market for these high-end GPUs has seen prices soar, with 48GB models of the RTX 4090D fetching between CNY20,000 and CNY40,000 (approximately US$2,735 to US$5,470) 1. Some reports even suggest prices reaching up to $6,000 in local markets 2. This price surge reflects the scarcity and high demand for powerful AI computing hardware in China.

Reasons Behind the Sell-Off

Several factors are driving this trend:

  1. Low Utilization Rates: AI data centers are experiencing server utilization rates as low as 20%, far below the 70-75% required for profitability 13.
  2. Quick Profit Generation: Companies are opting to sell idle GPUs for immediate profits rather than waiting 3-5 years to recoup investments through rentals 1.
  3. Financial Pressures: Some firms need to cover financial costs and loan repayments, pushing them to liquidate assets 1.
  4. Technological Advancements: As newer GPU models emerge, companies aim to sell older hardware while it still holds value 1.

Impact on China's AI Industry

This GPU sell-off reveals broader issues within China's AI sector:

  1. Overcapacity: Reports suggest that up to 80% of China's AI computing resources are sitting idle 23.
  2. Market Adjustment: The industry is recalibrating after an initial rush to build AI infrastructure 1.
  3. Supply Chain Uncertainty: Recent U.S. export restrictions on advanced AI chips have created uncertainty in the market 13.

Technical Aspects of GPU Modifications

The RTX 4090D GPUs being sold often require modifications:

  1. VRAM Upgrades: Some companies have doubled the VRAM from 24GB to 48GB, enhancing AI workload capabilities 2.
  2. Cooling System Changes: Data centers typically convert fan-cooled GPUs to blower-style cards for multi-GPU setups, which may need reversal for consumer use 1.

Future Implications

This situation raises questions about the future of China's AI hardware market:

  1. Potential Price Stabilization: The influx of refurbished GPUs may eventually lead to price normalization 3.
  2. Adaptation to Export Controls: Chinese firms may need to find alternative solutions as U.S. export restrictions tighten 13.
  3. Industry Consolidation: Companies unable to maintain profitability may face closure or acquisition 1.

As the Chinese AI industry navigates these challenges, the global AI hardware market watches closely, recognizing the potential ripple effects on international supply chains and technological development.

Continue Reading
NVIDIA's RTX 5090 GPUs Fetch Up to $10,000 on Black Markets

NVIDIA's RTX 5090 GPUs Fetch Up to $10,000 on Black Markets as AI Demand Surges in China

NVIDIA's GeForce RTX 5090 GPUs are being sold for exorbitant prices on Chinese black markets and eBay due to their effectiveness in running DeepSeek AI models, creating a demand reminiscent of the crypto-mining era.

Wccftech logoTechSpot logoTweakTown logo

3 Sources

Wccftech logoTechSpot logoTweakTown logo

3 Sources

AI Server Boom: Vietnamese Retailer Builds Powerful Rigs

AI Server Boom: Vietnamese Retailer Builds Powerful Rigs with Multiple RTX 5090 GPUs

A Vietnamese retailer is constructing high-powered AI servers using multiple NVIDIA GeForce RTX 5090 GPUs, sparking concerns about potential GPU shortages and price hikes reminiscent of the crypto mining era.

Tom's Hardware logoTechRadar logoTweakTown logoWccftech logo

4 Sources

Tom's Hardware logoTechRadar logoTweakTown logoWccftech logo

4 Sources

NVIDIA AI GPUs Cheaper to Rent in China Than in the US

NVIDIA AI GPUs Cheaper to Rent in China Than in the US

Recent reports reveal that renting NVIDIA's AI GPUs is significantly less expensive in China compared to the United States, raising questions about global AI chip accessibility and market dynamics.

Tom's Hardware logoWccftech logoTweakTown logoArs Technica logo

4 Sources

Tom's Hardware logoWccftech logoTweakTown logoArs Technica logo

4 Sources

Chinese Tech Giants Invest $16 Billion in NVIDIA's H20 AI

Chinese Tech Giants Invest $16 Billion in NVIDIA's H20 AI GPUs Amid US Export Restrictions

Chinese companies, including ByteDance, Alibaba, and Tencent, have placed orders worth $16 billion for NVIDIA's H20 AI GPUs in Q1 2025, despite US export restrictions. This surge in demand is driven by the AI boom and concerns over potential future limitations.

Tom's Hardware logoAnalytics India Magazine logoTweakTown logoBenzinga logo

5 Sources

Tom's Hardware logoAnalytics India Magazine logoTweakTown logoBenzinga logo

5 Sources

NVIDIA's RTX 5090D for China: AI and Crypto-Mining

NVIDIA's RTX 5090D for China: AI and Crypto-Mining Restrictions Spark Controversy

NVIDIA's new GeForce RTX 5090D, designed exclusively for the Chinese market, comes with significant restrictions on AI and crypto-mining performance, raising questions about its utility for professional workloads.

TweakTown logoWccftech logoTom's Hardware logo

3 Sources

TweakTown logoWccftech logoTom's Hardware logo

3 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved