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On Thu, 24 Apr, 12:04 AM UTC
3 Sources
[1]
Chinese data centers refurbing and selling Nvidia RTX 4090D GPUs due to overcapacity -- 48GB models sell for up to $5,500
Companies are letting go of their idle GPUs for instant profits. Some AI data centers in China are reportedly holding large stocks of China-specific 48GB Nvidia RTX 4090D GPUs, dismantling and refurbishing them, and then reselling them on the market as new cards. DigiTimes Asia reports that a few companies are resorting to letting go of excess computing capacity to generate multiple times the profit compared to renting the GPUs out, which will take them about three to five years to recoup their investment. This move is a sign of how China's AI rush is leading to billions of dollars in idle infrastructure. The report states that an AI data center requires a utilization rate of more than 70% to 75% for it to turn a profit. However, activation rates remain below 20%, meaning a significant amount of capacity is left unused and many GPUs remain idle. To help them stay afloat, a few companies are turning to selling their unused assets to generate some quick cash and pay off the bank loans they used to purchase their hardware. Selling RTX 4090 cards is quite lucrative, too. Currently, these China-specific RTX 4090D GPUs with 48GB of VRAM are priced between CNY20,000 and CNY40,000, or approximately US$2,735 and US$5,470. We're unsure if these cards were used at all, but they still need to be modified if the data center wants to sell them to consumers. Data centers typically convert fan-cooled GPUs into blower-style cards, such as this blower-style RTX 5090D leaked on Bilibili, for improved efficiency when used in multi-GPU systems. However, these are much noisier and provide less cooling when used as a single unit. One surprising aspect is that AI data centers are doing this despite the uncertainty surrounding AI chip supply from the U.S. The White House has recently blocked China-compliant Nvidia H20 and AMD MI308 chips for export to China, and there are also some rumors that the 5090D might also be affected by the ban. In fact, it's rumored that Nvidia has mentioned suspending supplying 5090D chips to its board partners, although it did not mention stopping sales entirely. Despite this, companies are still letting go of excess capacity -- likely because they need to cover their financial costs, or they risk going under. Furthermore, as chip technologies advance, companies that use older-generation AI GPUs will no longer be competitive, and they will be forced to sell these cards anyway. Therefore, it probably makes sense for them to release these underutilized assets now and then purchase whatever is available when demand actually arises.
[2]
Chinese AI data centers sell idle, refurbed RTX 4090D GPUs: 48GB models cost up to $5500
TL;DR: Chinese AI data center companies are selling off NVIDIA GeForce RTX 4090D graphics cards due to declining AI demand and low server utilization around 20%. With second-hand prices reaching $6000, firms aim to profit amid US export restrictions and reduced need for high-end AI hardware. China's AI data center companies are selling off their stacks of NVIDIA GeForce RTX 4090D graphics cards, because AI demand is dropping, and they no longer need the hardware and want to make a few quick (big) bucks with prices of the RTX 4090D hitting as high as $6000 in second-hand markets. We saw Chinese companies modding the RTX 4090D and doubling its 24GB of GDDR6X to a very hefty 48GB, which is a huge performance win for AI workloads. But in a new report from DigiTimes, we're hearing that Chinese AI companies are now selling their GPU inventory as AI power is being reduced, and they want to make some quick profits. Chinese AI companies are reportedly noticing a hefty 20% server utilization rate, so you can see why they're refurbing and selling off those high-end graphics cards. On top of that, there is a ton of uncertainty surrounding US export restrictions, and the latest ban on NVIDIA's custom made-for-China H20 AI GPU. NVIDIA's now previous-gen GeForce RTX 4090D with 48GB of GDDR6X memory is now being sold for as high as $6000, so with prices that high, you'd want to get in quick and get rid of your gear. AI companies are obviously noticing they don't need as much AI power as previously -- and DeepSeek is helping that in the middle of things -- where it has been reported that a huge 80% of China's AI computing power resources are sitting there idle, doing nothing.
[3]
Chinese AI Firms Are Reportedly Dumping NVIDIA's RTX 4090D GPUs Into The Market To Capitalize On The Rising Prices
Well, it seems like China's AI market is now actually selling their NVIDIA RTX 4090D GPUs, as they look to "shave off" the extra computing capacity for more profits. The AI frenzy in China was unique compared to the rest of the world because the nation, which didn't have cutting-edge chips, relied on other means for its hardware needs. One of the ways Chinese firms managed to get AI power was by modding consumer GPUs like the RTX 4090D, putting high VRAM onboard in order to get more computing capabilities. However, DigiTimes now reports that domestic firms in China are selling their GPU inventory as the need for AI power cools off and firms are looking for more ways to squeeze in profits. It is claimed that the GPU sell-off has occurred because many AI firms are experiencing significantly lower server utilization rates, going as low as 20%. This means that for such businesses to stay profitable, they would need to sell out their extra computing power, which is a major contributor to the sell-off. Apart from this, with the supply chain uncertainty in China following the new US export controls, it is certain that Chinese firms want to capitalize on it the most by selling GPUs at a time when prices are soaring. NVIDIA's RTX 4090D 48 GB is going for as high as $6,000 in local markets, and with AI firms now selling their inventory, we do expect it to come down. This is good news for domestic consumers, but it will take a lot of time before the prices return to their "pre-AI" era. It is clear now that the AI firms have realized that they don't need much computing power to cater to the market demand. We recently reported on how this situation is similar in the AI cluster segment, where it is reported that more than 80% of China's AI computing resources are idle. It will be interesting to see how the situation pans out regarding GPU availability in the Chinese markets, given that just a few weeks ago, such variants were pretty rare to acquire at decent prices.
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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.
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.
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.
Several factors are driving this trend:
This GPU sell-off reveals broader issues within China's AI sector:
The RTX 4090D GPUs being sold often require modifications:
This situation raises questions about the future of China's AI hardware market:
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.
Reference
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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.
3 Sources
3 Sources
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.
4 Sources
4 Sources
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.
4 Sources
4 Sources
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.
5 Sources
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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.
3 Sources
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