Nvidia has begun requiring customers in China to pay the full amount upfront for orders of its H200 artificial intelligence chips, even as regulatory approval in both the United States and China remains unresolved, according to a Reuters report citing unnamed sources.
Full Upfront Payments Replace Flexible Ordering
The report said Nvidia is no longer allowing refunds or changes to H200 orders placed by Chinese customers. This marks a shift from earlier sales practices that sometimes allowed partial deposits. Under the new terms, some buyers may be permitted to rely on commercial insurance or asset collateral, but the overall conditions are stricter than before.
Nvidia declined to comment on the report.
Regulatory Status In China And The United States
According to Bloomberg, Chinese authorities are expected to permit Nvidia to sell the H200 chips in the country. However, Beijing is seeking to restrict their use, aiming to prevent deployment by the military, state-owned enterprises, and operators of sensitive infrastructure.
At the same time, Nvidia continues to navigate U.S. export controls that affect its ability to sell advanced AI hardware to China. The company previously faced restrictions when the Trump administration required an export license for its H20 chips, a move that led Nvidia to write down $5.5 billion in inventory.
Demand And Production Plans
Despite regulatory uncertainty, demand for Nvidia’s H200 chips remains strong. Chinese companies have reportedly placed orders for more than 2 million of the GPUs for delivery in 2026, according to the Reuters report. The volume of orders has prompted Nvidia to increase production capacity for the chips.
Managing Political And Commercial Risk
The stricter payment requirements reflect Nvidia’s effort to manage exposure while continuing to serve customers in China. The company is balancing strong demand for its AI chips against the risk posed by shifting trade and export policies in both Washington and Beijing.
Featured image credits: Roboflow Universe
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