The Chinese market pushes Nvidia to strengthen the commercial terms on H200 chips

New Payment Strategies for the Asian Market

According to confidential sources reported by Reuters, Nvidia is imposing stricter requirements on Chinese customers wishing to acquire its H200 AI processors. Specifically, the company now requires full payment prior to delivery, abandoning traditional agreements that involved partial deposits or more flexible terms. The new policy does not allow returns or order modifications, representing a significant change from previous practices. Although some buyers may resort to commercial guarantees or insurance instruments, the conditions remain much more stringent than in the past. Nvidia has not issued any official statements regarding these contractual changes.

The Demand Remains Strong Despite Regulatory Uncertainty

Bloomberg reports that Chinese authorities are expected to authorize the commercialization of the H200 within the country, while maintaining specific restrictions: the chips cannot be used for military purposes, by state-owned companies, or in sensitive infrastructure. Despite these regulatory hurdles, interest in the GPU remains robust. Industry reports indicate that Chinese companies have already ordered over 2 million units expected for 2026, forcing Nvidia to expand its production capacity to meet this demand.

Balancing Business Opportunities and Geopolitical Constraints

Nvidia faces the complex challenge of capitalizing on a rapidly growing demand in China while managing geopolitical tensions in the United States and the Chinese market. Previously, the company recorded significant losses, with inventory write-downs amounting to $5.5 billion, as a result of US regulatory restrictions requiring special licenses for exporting the H20 series to China. These new advance payment measures represent an attempt to further mitigate financial risks in an uncertain regulatory environment.