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   CONSPRCY      How big is your tinfoil hat?      2,445 messages   

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   Message 1,353 of 2,445   
   Mike Powell to All   
   Data centers in China are   
   01 May 25 10:15:00   
   
   TZUTC: -0500   
   MSGID: 1086.consprcy@1:2320/105 2c78ce57   
   PID: Synchronet 3.20a-Linux master/acc19483f Apr 26 202 GCC 12.2.0   
   TID: SBBSecho 3.20-Linux master/acc19483f Apr 26 2024 23:04 GCC 12.2.0   
   BBSID: CAPCITY2   
   CHRS: ASCII 1   
   Data centers in China are dumping rare 48GB Nvidia RTX 4090D GPUs for nearly   
   $6,000, but the exact reason remains a mystery   
      
   Date:   
   Wed, 30 Apr 2025 17:31:00 +0000   
      
   Description:   
   Data centers in China are selling off rare 48GB Nvidia RTX 4090D GPUs for   
   nearly $6,000.   
      
   FULL STORY   
   ======================================================================Chinese   
   AI centers are dismantling 4090D GPUs and selling them off Reselling idle    
   GPUs yields faster profits than waiting on rental returns Some say its   
   overcapacity, others claim preparation for newer tech    
      
   Some Chinese AI data centers are dismantling and reselling China-specific   
   Nvidia RTX 4090D GPUs, reports have claimed.    
      
   A report from DigiTimes Asia says these 48GB cards, designed to circumvent   
   U.S. export restrictions on the flagship AD102 gaming GPU, and initially   
   deployed as part of Chinas AI infrastructure push, are now being pulled from   
   racks, refurbished, and sold on the open market.    
      
   Data center operators are reportedly finding that this offers a faster and   
   more profitable return than waiting three to five years to recover their   
   investment through GPU rental.   
      
   An alternative theory    
      
   Each RTX 4090D sells for between CNY20,000 and CNY40,000 (around US$2,735 to   
   US$5,470), and even if lightly used, the cards require modification for   
   consumer resale.    
      
   Typically this means converting them from fan-style to blower-style coolers,   
   which are better suited to dense server environments but less effective for   
   single-GPU use.    
      
    DigiTimes Asia says this move reflects deeper financial pressure, with many   
   AI data centers struggling to keep their heads above water amid low demand.    
      
   According to the report, data centers need utilization rates of at least 70%   
   to break even - but current rates are often below 20%. That leaves expensive   
   infrastructure sitting idle while loan repayments loom.    
      
   This isnt an isolated case. As we reported recently, Chinas rapid AI   
   infrastructure expansion - encouraged by state policy - has led to   
   overbuilding.    
      
   Hundreds of data center projects were launched across the country in 2023 and   
   2024, but actual usage has lagged behind expectations . It's no surprise   
   therefore that developers are now offloading hardware to reduce losses.    
      
   Although overcapacity is likely at least part of the reason behind the   
   selloff, some operators may simply be clearing space for newer technology.    
      
   With interest moving from large-scale model training to real-time inference,   
   older training-focused systems may no longer be as relevant as they once    
   were.    
      
   Combined with the latest US export restrictions, which affect chips like   
   Nvidias H20, Chinese data centers will be looking at offloading old hardware   
   and shifting to inference-ready setups.   
      
   ======================================================================   
   Link to news story:   
   https://www.techradar.com/pro/data-centers-in-china-are-dumping-rare-48gb-nvid   
   ia-rtx-4090d-gpus-for-nearly-usd6-000-but-the-exact-reason-remains-a-mystery   
      
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