Nvidia, the prominent chipmaker, is now mandating its Chinese customers to pay the full amount upfront for its H200 AI chips amid uncertain approval statuses in the U.S. and China, as reported by TechCrunch. This new policy, which eliminates the possibility of refunds or order modifications, marks a departure from Nvidia’s previous more flexible terms that occasionally allowed partial deposits.
While some customers might have the option to utilize commercial insurance or asset collateral to secure orders, the stricter conditions reflect Nvidia’s cautious approach in the current geopolitical landscape. Despite these challenges, the demand for Nvidia’s H200 chips remains robust, with reports indicating that Chinese companies have already placed orders exceeding 2 million units in 2026, prompting Nvidia to scale up production.
China is anticipated to grant approval for Nvidia to distribute its H200 chips in the country, although with restrictions to prevent utilization by military entities, state-owned enterprises, and critical infrastructure, according to Bloomberg. Nvidia, navigating complex political environments, aims to balance meeting market demand while mitigating geopolitical risks in both the U.S. and China. The company previously faced significant financial losses due to export restrictions imposed during the Trump administration, necessitating a substantial inventory write-down.
Source: TechCrunch