Nvidia is reportedly asking its customers in China to pay the full cost upfront for its H200 artificial intelligence chips, even as regulatory approval in both the United States and China remains uncertain. According to sources cited by Reuters, the new payment terms leave little flexibility for buyers and reflect growing political and regulatory risks surrounding advanced chip sales.
Under the revised conditions, customers must pay the entire amount in advance, with no option for refunds or changes to their orders. Some buyers may be allowed to rely on commercial insurance or offer assets as collateral, but overall, the requirements are far stricter than Nvidia’s previous policies. In the past, the company sometimes accepted partial deposits instead of full payment, according to the report. Nvidia declined to comment on the changes.
The tougher stance comes as Chinese regulators are still reviewing whether Nvidia can sell its H200 chips in the country. Bloomberg previously reported that China is expected to allow the sales, but with limits aimed at preventing the chips from being used by the military, state-owned enterprises, or sensitive infrastructure projects. These conditions add uncertainty for both Nvidia and its customers, increasing the financial risk tied to large orders.
Despite these challenges, demand for Nvidia’s H200 chips in China remains strong. Reports suggest that Chinese companies have already placed orders for more than two million of the GPUs for delivery in 2026. The scale of those orders has pushed Nvidia to increase production to keep up with interest from the market, even as regulatory questions remain unresolved.
Nvidia is trying to carefully balance its business goals with geopolitical pressures. The company faces scrutiny from US authorities concerned about advanced technology flowing to China, while also navigating Beijing’s efforts to control how such chips are used domestically. This balancing act has already proven costly in the past.
Earlier, Nvidia was hit hard when the Trump administration required the company to obtain a license to export its H20 chips to China. That decision forced Nvidia to write down about $5.5 billion in inventory, highlighting the financial risks tied to sudden policy changes.
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