Nvidia Asks Chinese Customers to Pay Upfront for H200 AI Chips

Nvidia is reportedly requiring customers in China to pay in full upfront for its H200 AI chips, even as regulatory approval from both the United States and China remains unresolved. The policy change was first reported by Reuters, citing people familiar with the matter.

According to the report, Nvidia is enforcing stricter terms than it has in the past, leaving little flexibility for buyers. Orders are reportedly non-refundable and do not allow modifications once placed. While some customers may be able to rely on commercial insurance or pledge assets as collateral, the new conditions are significantly tighter than earlier arrangements, which at times allowed partial deposits.

Nvidia declined to comment on the report.

Despite uncertainty, Chinese authorities are expected to approve the sale of Nvidia’s H200 chips, according to Bloomberg. However, Beijing is reportedly seeking safeguards to ensure the processors are not used by the country’s military, state-owned enterprises, or critical infrastructure operators.

Demand for Nvidia’s H200 remains strong. Chinese companies have reportedly placed orders totalling more than 2 million GPUs for 2026, prompting Nvidia to increase production to meet anticipated demand.

The situation highlights Nvidia’s effort to balance surging global demand for its AI hardware with the political and regulatory risks associated with doing business across the U.S.–China divide. The company previously suffered a major setback when the Trump administration required export licenses for Nvidia’s H20 chips destined for China. This move forced the chipmaker to write down $5.5 billion in inventory.

As regulatory scrutiny intensifies on both sides, Nvidia appears to be tightening financial terms to protect itself while continuing to serve one of its most important international markets.