Nvidia Forces Chinese Buyers to Pay Full Price Upfront for H200 AI Chips Amid Regulatory Storm

Nvidia’s H200 AI chip gamble: Full upfront payments in China as regulatory tides and $2B+ inventory risks collide.

Reuters reported, citing anonymous sources, that Nvidia requires Chinese customers to pay full upfront for H200 AI chips, with no refunds or order changes. This policy creates immediate cash flow constraints for startups and enterprises in China seeking to scale AI infrastructure.

Demand remains strong, with Chinese companies ordering over 2 million H200 GPUs by 2026, according to industry tracking.

The payment terms reflect heightened U.S.-China regulatory pressures, forcing Nvidia to balance demand with political risk. Past Trump-era export restrictions led to a $5.5 billion inventory write-down for the company, illustrating the financial volatility of navigating geopolitical tensions in AI hardware procurement.