Nvidia cracks down on overseas cloud AI GPU rentals for China

Nvidia-based compute is getting scarce and expensive for Chinese AI labs on both of their main routes, buying export-compliant cards and renting abroad, and the Financial Times reports that Nvidia’s own crackdowns are part of the reason. Nvidia has told cloud partners worldwide that at least 51% of their services must go to non-Chinese firms, while Chinese companies have bought more than 1 million Nvidia gaming and workstation cards this year to cover the shortfall. Meanwhile, a B300 rack that sells for about $600,000 internationally reportedly fetched $2.8 million in China last month.

Chinese customers have ordered more than 6 million of Nvidia’s export-compliant RTX Pro 5500 cards. That is at least twice the 3 million that the company could reportedly manufacture in 2027. One source told CNBC that it was proposed that Moonshot pay 30% to 50% more upfront, in comparison to a non-Chinese entity.

Many Chinese groups have relied on overseas leases for advanced AI work, which can …