TL;DR
Reuters reports Nvidia is requiring full, nonrefundable upfront payment from Chinese customers ordering H200 AI chips. Bloomberg has said China is likely to permit H200 sales with restrictions on military, state-owned and sensitive infrastructure use; demand for the GPUs remains high.
What happened
According to Reuters, Nvidia has begun asking its customers in China to pay the full price in advance for H200 AI chips, with no option for refunds or order changes, citing anonymous sources. The new terms are reportedly stricter than Nvidia’s prior approach, which in some cases accepted partial deposits. Some buyers may be allowed to provide commercial insurance or pledge assets as collateral instead of cash, the report added. Nvidia declined to comment on the account. Separate reporting from Bloomberg indicates Beijing is expected to permit sales of the H200 in China but wants to ensure the processors are not used by the military, state-owned enterprises or on sensitive infrastructure. Orders from Chinese companies are reported to exceed two million H200 units for 2026, and Nvidia is ramping production while navigating regulatory and political risks; the company previously recorded a $5.5 billion inventory write-down after U.S. export controls impacted H20 shipments.
Why it matters
- Shifting payment terms move financial and delivery risk from the supplier to Chinese buyers, potentially straining customers’ cash flow.
- Unresolved approval processes in both the U.S. and China could delay shipments or limit the chips’ permitted uses, affecting deployments.
- Tighter commercial terms may reflect Nvidia’s effort to reduce exposure to regulatory or inventory losses after a prior $5.5 billion write-down.
- Large reported order volumes suggest strong enterprise demand, but also raise questions about enforcement of use restrictions and end-user controls.
Key facts
- Reuters reported Nvidia is asking Chinese customers to pay in full up front for H200 chips, citing anonymous sources.
- The company is allegedly not allowing refunds or order changes under the new terms.
- Some buyers may use commercial insurance or asset collateral as alternative safeguards, per the report.
- The reported policy is stricter than Nvidia’s earlier practices, which sometimes accepted partial deposits.
- Nvidia declined to comment on the Reuters report.
- Bloomberg has reported China is expected to allow H200 sales but intends to block military, state-owned firms and sensitive infrastructure from using them.
- Chinese companies reportedly placed orders for more than 2 million H200 GPUs in 2026, prompting production increases.
- Nvidia previously wrote down $5.5 billion in inventory after a U.S. export-control development affected H20 chips.
What to watch next
- Whether Chinese regulators formally approve H200 exports and under what specific conditions (not confirmed in the source).
- How Chinese customers respond to the upfront-payment requirement, including whether they seek insurance, collateral or opt out (not confirmed in the source).
- Any future U.S. export-control decisions or licensing actions that could affect H200 shipments or inventory exposure (not confirmed in the source).
Quick glossary
- H200: A model of Nvidia AI accelerator GPU designed for large-scale machine learning workloads.
- Export license: A government authorization required to ship certain controlled technologies to foreign destinations.
- Collateral: Assets pledged by a buyer to secure a seller against financial loss if payment or contract terms are not met.
- Inventory write-down: An accounting measure that recognizes a reduction in the value of held inventory, reflecting losses or obsolescence.
Reader FAQ
Is Nvidia really requiring full, nonrefundable payment for H200 chips in China?
Reuters reported that Nvidia is asking Chinese customers to pay in full up front and is not leaving room for refunds or order changes.
Will China allow sales of the H200 there?
Bloomberg reported that China is expected to permit H200 sales but wants to restrict their use by the military, state-owned firms and sensitive infrastructure.
Why has Nvidia changed its payment terms?
Not confirmed in the source.
How large is demand for the H200 in China?
The source reports Chinese companies have placed orders for more than 2 million H200 units for 2026.
Did Nvidia respond to the reporting?
Nvidia declined to comment, according to the Reuters report.
IN BRIEF Posted: 9:29 AM PST · January 8, 2026 IMAGE CREDITS: COSTFOTO/NURPHOTO / GETTY IMAGES Kate Park Nvidia’s reportedly asking Chinese customers to pay upfront for its H200 AI…
Sources
- Nvidia’s reportedly asking Chinese customers to pay upfront for its H200 AI chips
- Exclusive: Nvidia requires full upfront payment for H200 …
- Nvidia Sees a Big Sales Opportunity in China. Locking It …
- Beijing tells companies to pause H200 purchases
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