GPU rental rates in China are now three times higher than in the US, driving a significant price gap that makes smuggled systems cost 2x-2.5x, up from 1.3x-1.7x in early 2026. This price disparity is increasing traction for Chinese hardware alternatives like Huawei and Cambricon, with Zhipu AI acquiring XCoreSigma to facilitate rapid porting of CUDA kernels.
Chinese AI labs are rapidly adopting domestic hardware due to extreme GPU rental costs, shifting compute demand to local suppliers and accelerating software ecosystem development.