Key Takeaways
1. Nvidia’s B200 AI processors are still being shipped to China despite U.S. export restrictions, revealing the ineffectiveness of current regulations.
2. A new reseller, “Gate of the Era,” has emerged, facilitating around $400 million in transactions of B200 hardware through various channels.
3. Demand for restricted GPUs like the B200 and H100 is driven mainly by smaller Chinese companies and third-party datacenter operators, rather than major tech firms.
4. The introduction of Nvidia’s lower-spec H20 chip has reduced some demand for the B200, as customers consider this compliant option.
5. Supply chains are evolving, with Southeast Asian countries serving as staging areas for shipments to China, prompting discussions of further regional export controls by Washington.
Shipments exceeding $1 billion of Nvidia’s leading B200 artificial-intelligence processors have still made their way to China in the three months following Washington’s stricter export limitations, highlighting how ineffective the current restrictions are. The B200, which is the same graphics processing unit (GPU) used by companies like OpenAI, Google, and Meta for training sophisticated models, is a specialized electronic circuit built for swift image and data processing. Even though it’s officially banned in the Chinese market, it has become a key part of a vibrant gray market for high-end U.S. chips.
Emergence of New Resellers
Documents from the Financial Times show that a reseller based in Anhui, known as “Gate of the Era,” has quickly become a significant player in this trade. Established in February, the company obtained at least two large shipments of B200 racks, each containing eight GPUs along with necessary components and software. Estimates suggest that the company has facilitated around $400 million in hardware transactions through both direct and indirect channels. The market prices have varied between RMB 3 million and 3.5 million (approximately US$489,000) for each rack, a decrease from over RMB 4 million (around $560,000) in mid-May. These prices remain about 50% higher than similar offerings in the U.S.
Market Dynamics and Demand
Distributors are promoting B200, H100, and other restricted GPUs on platforms like Douyin and Xiaohongshu, arranging on-site tests before customers pick up the hardware. One intermediary compared the situation to a “seafood market.” There is a good supply as long as buyers are okay with the lack of Nvidia’s official support.
Since major Chinese tech firms risk their global compliance programs by using illegal hardware, demand is primarily from smaller domestic companies, third-party datacenter operators, and entities already blacklisted by the U.S. The reintroduction of Nvidia’s lower-spec H20—a version of Nvidia’s AI chip designed with reduced capabilities to comply with export regulations—has lessened some of the demand pressure. Resellers are noting a decrease in B200 transactions as customers consider this sanctioned option.
Evolving Supply Chains
Nevertheless, the supply chain is still adapting. Industry professionals have mentioned that Southeast Asian locations, especially Thailand and Malaysia, are acting as temporary staging areas. This has led Washington to consider imposing more regional controls in the upcoming quarter. Even if these routes were to close, distributors claim that new channels through less-restricted European regions are already being utilized, highlighting the financial incentives that continue to facilitate the flow of advanced U.S. AI silicon into China, despite ongoing rounds of export regulations.
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