Nvidia asks its customers in China for full payment in advance for the H200 chips, due to uncertainties related to approvals from Chinese authorities.

Nvidia has decided to require its customers in China to make full payment in advance for H200 chip orders as a precautionary measure against risks related to approvals from Beijing authorities. The contractual conditions are strict, with no possibility of cancellation or modification of orders. Although Nvidia had previously requested deposits, it is now applying stricter rules due to uncertainties regarding imports. Chinese companies have placed orders for over 2 million H200 chips, each valued at $27,000, exceeding Nvidia's current stock. While there is a possibility that China may approve some imports, these will be limited to selected commercial uses. The full payment strategy shifts regulatory risks to customers, who must lock up capital without delivery guarantees. Nvidia has previously been affected by policy changes, incurring significant losses. H200 deliveries could begin before the Lunar New Year, in February.