Nvidia Defends Payment Policy for H200 Chips Amid Geopolitical Uncertainty

Nvidia’s refusal to demand upfront payments for H200 chips in China underscores a delicate balancing act between financial risk and geopolitical tensions.

An Nvidia spokesperson confirmed the company’s current policy to Tom’s Hardware:

We do not require upfront payment and would never require customers to pay for products that they do not receive.

This stance contrasts with a Reuters report indicating Nvidia previously demanded advance payments from Chinese clients, sometimes requiring only a deposit. The shift coincides with the H200 GPU’s technical obsolescence as the Blackwell family and upcoming Vera Rubin architecture take precedence.

Unconfirmed orders for 200,000+ H200 chips each from Alibaba and ByteDance pose a risk of unsold inventory should Beijing block purchases. Nvidia reportedly maintains 80,000 H200 chips in stock as a buffer against political uncertainty.