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Nvidia, renowned primarily for its RTX series graphics cards, commands an influential position in the artificial intelligence realm. Often termed the silent powerhouse of the ongoing AI revolution, numerous AI platforms, including the likes of ChatGPT, rely heavily on Nvidia's chipsets. This dependence is becoming increasingly conspicuous among users and industry stakeholders. Rising Demand Meets Skyrocketing Prices in Japan Recently, some of Nvidia's chips became available for purchase in Japan. Contrary to expectations, the prices of Nvidia's generative AI chips, especially the Nvidia H100, have shot up considerably. This surge can be attributed to two primary factors - the devalued yen and the growing demand for these specialized chips. Nvidia H100: An AI Developer's Dream Chip The H100 GPU, from Nvidia, stands out as a vital tool for those delving deep into artificial intelligence research and applications. This GPU's prowess is unparalleled in the market, making it a prime choice for enterprises venturing into generative AI innovations. However, as of September 2023, the price tag attached to the H100 GPU witnessed a 16% increment, thanks to the decision by Nvidia’s official sales associate in Japan, GDEP Advance. This augmentation has pegged the H100 GPU's price at approximately 5.44 million yen, or $36,300. The Role of the Weak Yen Japan's economy is grappling with a weakening yen, which has depreciated around 20% against the US dollar in the preceding year. This economic situation implies that to acquire the equivalent US dollars for purchasing Nvidia's GPUs, Japanese corporations need to shell out a greater amount of yen. Implications for Generative AI Enterprises in Japan This alarming rise in Nvidia GPU prices spells challenges for Japanese entities in the generative AI sector. These companies are already burdened with elevated expenses associated with other critical components like data storage and computational power. The escalated GPU costs amplify these expenditures, potentially making it tougher for Japanese firms to mark their presence in the global generative AI arena. Unwavering Demand Despite Escalated Costs Interestingly, the H100 GPU's unparalleled capabilities mean that several Japanese enterprises are still ready to invest, irrespective of the soaring prices. Its unmatched performance is crucial for curating cutting-edge generative AI tools. However, the duration and future trajectory of these inflating GPU prices in Japan remain ambiguous. Final Thoughts The rising costs of Nvidia’s GPUs in Japan underscore the intricate interplay of global economics, technological advancement, and market demand. While the H100 remains a coveted tool for AI developers, the fluctuating prices and economic factors add a layer of complexity to Japan's AI development landscape. Also Read:

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global AI competition.

Nvidia H100 GPU in Japan: Price Surge and Its Implications