NVIDIA now requires Chinese customers to pay in full upfront for its H200 artificial intelligence chips. This move aims to mitigate risks tied to the uncertainty of Beijing’s approval for shipments.
The terms are unusually stringent and have not been previously reported. They also limit options for customers to cancel or modify orders. This policy applies to a market where Chinese tech companies have already placed orders for millions of units.
This policy underscores NVIDIA’s delicate position. The company attempts to serve high demand from China while navigating complex U.S. export controls.
The situation faces further complication from Beijing. Reports indicate Beijing has asked some local firms to halt their H200 orders. Additionally, potential mandates exist for companies to use domestic AI chips.