NVIDIA’s strategic focus on artificial intelligence (AI) has led to a thriving GPU business. The company’s investment in technologies like ChatGPT and other generative AI models has paid off, as it is now receiving orders from various sectors of the tech industry for its cutting-edge GPUs, including the A100 and H100 models.

However, recent reports indicate that NVIDIA may struggle to meet the overwhelming demand for AI chips, despite its best efforts. According to a recent report from DigiTimes, as orders for NVIDIA’s latest GPUs continue to surge, the company has ramped up chip production at TSMC (Taiwan Semiconductor Manufacturing Company).

NVIDIA’s A100 GPU utilizes the TSMC 7nm process node, while the H100, which began shipping in May, is based on the TSMC 4N process node—an optimized version of the 5nm node specifically designed for NVIDIA. Since their release, both the H100 and DGX H100 GPU-powered servers have experienced tremendous demand. Despite NVIDIA’s attempts to keep up, the recent AI boom has placed significant strain on the company’s ability to meet the demand.

In China, where NVIDIA is offering modified versions of the A100 and H100 GPUs to circumvent US sanctions (known as A800 and H800), these chips are being sold at prices 40% higher than the original manufacturer’s suggested retail price (MSRP). The demand for AI GPUs in China is so high that even the V100, a GPU released in 2018 featuring the first-ever Tensor Core architecture, is priced at around 10,000 USD or 69,000 RMB. The NVIDIA A800 is priced at approximately 252,000 RMB or 36,500 USD.

Delivery times have also been affected, as NVIDIA prioritizes fulfilling orders for its non-Chinese tech partners. Consequently, the delivery time in China, which was originally around 3 months for NVIDIA GPUs, has now been extended to three months or even longer in some cases. It is reported that certain new orders may not be fulfilled until December, resulting in a waiting time of over 6 months.

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