Nvidia is now requiring its customers in China to pay the full cost of its H200 AI chips upfront, according to a report. This new policy leaves no room for refunds or changes to orders. While some customers may be allowed to use commercial insurance or asset collateral, these terms are far stricter than Nvidia’s earlier practices, which sometimes permitted partial deposits.
Approval for these sales from both the United States and Chinese governments remains uncertain. However, China is expected to allow Nvidia to sell its H200 chips in the country, though Beijing intends to prevent the chips from being used by its military, state-owned firms, and sensitive infrastructure.
Despite these challenges, demand for the H200 remains strong. Chinese companies have reportedly placed orders for more than 2 million of these GPUs for 2026, prompting Nvidia to ramp up production.
Nvidia is attempting to carefully balance meeting this strong demand with managing political risk in both the U.S. and China. The company previously suffered costly setbacks when an earlier chip, the H20, faced new export license requirements from the U.S. government, forcing Nvidia to write down $5.5 billion worth of inventory.