Nvidia Implements Strict Payment Terms for H200 AI Chips in China Amid Regulatory Uncertainty
Nvidia has tightened its sales terms for Chinese customers, now demanding full upfront payment for orders of its H200 AI chips. The policy shift eliminates cancellation or refund options, transferring financial risk to buyers as Beijing deliberates approval timelines. Chinese firms have already placed orders exceeding 2 million units—far beyond Nvidia's current 700,000-chip inventory—at $27,000 per unit.
The MOVE follows Nvidia's $5.5 billion inventory write-down last year after sudden export bans, prompting the chipmaker to safeguard against similar disruptions. While regulators determine potential purchase quotas for domestic alternatives, Beijing has advised tech companies to pause new H200 orders. The stricter terms reflect growing tensions in the semiconductor trade and Nvidia's strategic pivot to mitigate geopolitical risks.
