Though many of us recognize Nvidia for its RTX series graphics cards, the company is much more than that. Especially in the field of artificial intelligence, this tech giant can be described as the unsung hero of our current AI era. Numerous AI services, including ChatGPT, utilize Nvidia’s chips, and this fact is drawing increasing attention from users every day.
Recently, some of the company’s chips even went on sale in Japan. However, the prices of Nvidia’s generative AI chips are soaring in Japan, driven by the weak yen and strong demand for the chips. Here are the details…
Nvidia H100 generative AI chip prices skyrocket in Japan
If you’re working on artificial intelligence technology, Nvidia’s H100 GPU is just what you need. This chip is the most powerful GPU available in the market, and it’s highly sought after by companies creating new generative AI products and services. In September 2023, Nvidia’s official sales partner in Japan, GDEP Advance, increased the catalog price of the H100 GPU by 16%. As a result, the H100 GPU is now priced at approximately 5.44 million yen ($36,300) in Japan.
The weak yen is also contributing to the rising cost of Nvidia’s GPUs in Japan. The yen has lost about 20% of its value against the US dollar in the past year. This means that Japanese companies have to pay more yen to buy the same amount of US dollars, which they need to buy Nvidia’s GPUs from the US.
The rising cost of Nvidia’s GPUs is a concern for Japanese companies that are developing generative AI products and services. These companies are already facing high costs for other components, such as data storage and computing power. The rising cost of GPUs is adding to these costs, and it could make it more difficult for Japanese companies to compete in the global generative AI market.
Despite the rising costs, some Japanese companies are still willing to pay more for Nvidia’s GPUs. This is because the H100 GPU is the most powerful GPU on the market, and it is essential for developing the most advanced generative AI applications. It is unclear how long the rising prices of Nvidia’s GPUs will continue in Japan.
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