Reuters: Nvidia Tightens Sales Terms for H200 Chips in China

According to anonymous sources cited by Reuters, Nvidia is now requiring its customers in China to pay a full advance payment for its H200 AI chip, although there is still uncertainty about the approval of the chip’s sales in the United States and China.

The report stated that the chip manufacturer did not leave any room for refunds or changes to the order. Reuters reported that although some customers may be allowed to use commercial insurance or asset collateral, these terms are much stricter than Nvidia’s previous policy, which sometimes allowed partial deposits to be paid.

Nvidia declined to comment on this.

According to Bloomberg, China is expected to allow Nvidia to sell its H200 chips domestically, but Beijing hopes to prevent these chips from being used by its military, state-owned enterprises, and sensitive infrastructure sectors.

Despite facing challenges, the market demand for Nvidia H200 chips remains strong. According to reports, Chinese companies have ordered over 2 million of these GPUs for 2026, prompting the chip manufacturer to increase production.

Nvidia is attempting to strike a cautious balance between meeting the strong demand for its chips and managing political risks in the United States and China. Previously, the Trump administration had stated that the company needed a license to export its H20 chips to China, causing Nvidia to suffer a costly setback and be forced to write down inventory worth $5.5 billion.