# China AI Market

The Token Tax: China’s AI Ambitions Hit a Compute Bottleneck as GPU Rents Soar

Surging demand for AI tokens has triggered a compute shortage in China, driving NVIDIA H100 rental prices up by 30% and forcing major cloud providers like Alibaba and Tencent to hike service fees. With daily token usage growing a thousand-fold in two years, the industry is shifting from subsidized growth to a high-cost reality where hardware availability dictates market power.