Nvidia does not require customers to make full upfront payments for its H200 artificial intelligence chips, the U.S. chipmaker said on Tuesday, pushing back against claims that it had imposed unusually strict commercial terms on Chinese buyers amid regulatory uncertainty.
In a statement to Reuters, an Nvidia spokesperson said the company “would never require customers to pay for products they do not receive,” responding to a Reuters report published on January 8 that said Nvidia had asked some Chinese clients seeking its advanced AI chips to make full payments in advance.
The earlier report, citing sources familiar with the matter, said Nvidia had tightened its sales conditions for the H200 — one of its most powerful data centre chips — because of uncertainty over whether shipments to China would ultimately be approved. The report said the payment terms reflected heightened caution as Nvidia navigates U.S. export controls and Chinese regulatory scrutiny.
According to one source, Nvidia’s standard commercial arrangements with Chinese customers have previously included advance payment requirements. However, in many cases, clients were permitted to place deposits rather than pay the full amount upfront. The same source said that for the H200 chip, Nvidia had been particularly strict in enforcing payment conditions, given the lack of clarity over whether Chinese regulators would greenlight imports.
The H200 is designed for high-end artificial intelligence workloads, including large language models and advanced data analytics, making it highly sought after by cloud computing firms and research institutions. However, its advanced capabilities also place it under close scrutiny amid escalating U.S.-China technology tensions.
Analysts say a requirement for full upfront payment would effectively shift financial risk from Nvidia to its customers. Under such a structure, buyers would need to commit significant capital without certainty that Beijing would approve the imports or that the chips could be deployed as planned, potentially tying up funds for months.
Nvidia has been grappling with a complex regulatory environment as Washington tightens restrictions on the export of advanced semiconductors to China, while Beijing increases oversight of strategic technology imports. The company has repeatedly said it aims to comply fully with all applicable laws while continuing to serve customers globally.
The clarification from Nvidia underscores the sensitivity surrounding AI chip sales to China, where commercial practices are increasingly shaped by geopolitical and regulatory risks rather than purely market demand.
