Hajra Naz
Nvidia has begun requiring Chinese customers to pay the full amount upfront for its H200 AI chips, even as regulatory approval in both the U.S. and China remains unresolved, according to a Reuters report citing people familiar with the matter.
Under the new terms, orders are non-refundable and cannot be modified once placed. While some buyers may be allowed to rely on commercial insurance or asset-backed guarantees, the conditions are significantly stricter than Nvidia’s previous policies, which at times accepted partial deposits.
Nvidia declined to comment on the report.
Chinese regulators are widely expected to approve sales of the H200, Bloomberg reported, though Beijing is said to be pushing for safeguards to prevent the chips from being used by the military, state-owned enterprises, or critical infrastructure projects.
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Despite regulatory uncertainty, demand for Nvidia’s H200 chips remains strong. Chinese companies have reportedly placed orders exceeding two million GPUs for delivery in 2026, prompting Nvidia to scale up production.
The shift highlights Nvidia’s delicate balancing act. The company is attempting to satisfy surging global demand for AI hardware while navigating political pressure and export controls on both sides of the Pacific. That risk is not theoretical: Nvidia previously took a $5.5 billion inventory write-down after the Trump administration required export licenses for its H20 chips, effectively blocking their sale to China.
The stricter payment terms suggest Nvidia is determined to protect itself financially as geopolitical tensions continue to reshape the global AI chip market.
