Nvidia demands full upfront payment for H200 chips in China.

Nvidia mandates full upfront payment and bans cancellations/refunds for H200 orders in China amid regulatory uncertainty

  • NVIDIA now requires full upfront payment and forbids cancellations or refunds for orders of its high-end H200 AI chips in China.
  • Beijing has told firms to halt H200 purchases, prompting the tighter payment terms as a hedge against approval uncertainty, according to a report that reported that Nvidia decided to hedge against the ongoing uncertainty.
  • Deposits and post-order configuration changes are no longer permitted; limited exceptions may be allowed only with commercial insurance or asset collateral.
  • Chinese firms had placed about 2 million orders, exceeding available stock of roughly 700,000 units; each chip is priced at about $27,000.
  • China could approve H200 sales for commercial use later this quarter, according to a separate report that said approval may arrive as soon as this quarter.

Nvidia has begun requiring Chinese buyers to pay the full price for its high-end H200 AI chips at the time of order, effective in early January 2026, after Chinese authorities told firms to halt H200 purchases. The company set strict terms that bar cancellations, refunds, and post-order configuration changes as it hedges against uncertainty over regulatory approval, as one report said reported that Nvidia decided to hedge against the ongoing uncertainty.

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Under the new rules, deposits are not an option for Chinese customers, and exceptions are limited. Suppliers may consider help only in special cases if buyers provide commercial insurance or offer assets as collateral instead of full cash payment.

Chinese technology firms had placed roughly 2 million orders for the H200, far above the company’s inventory of about 700,000 units, and production was increased to meet demand. Each chip is priced at about $27,000, and orders have remained strong because local alternatives have lagged in performance.

The Chinese government has signaled it may allow commercial sales of the H200 later this quarter, according to a report that said approval could come as soon as this quarter. Domestic chips such as the Ascend 910C from Huawei have not matched the H200 for large-scale AI model training, keeping demand for the Nvidia product high.

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