NVIDIA has implemented unusual payment terms for the sale of its H200 chips in China, requiring full payment in advance with no possibility of cancellation, refunds, or changes to orders.
This measure comes in a context of uncertainty, as although the Trump administration has allowed the sale of these chips with a 25% tariff, Beijing has not yet offered its official approval for imports.
The Chinese market is crucial for NVIDIA, which has received orders for more than 2 million H200 chips, each at an approximate price of 27,000 dollars.
Nvidia does not trust China and calls for an unprecedented measure
However, the company only has an available inventory of 700,000 units. This dynamic has created a complex financial landscape for customers, who must commit capital without certainty about whether Beijing will give the green light to shipments.
Among the Chinese tech companies that have shown interest in acquiring the H200 are giants like ByteDance and Alibaba, which plan to request more than 200,000 units each, attracted by the superior performance of the new chip. The H200 has the potential to deliver approximately six times the performance of the H20, which is currently locked for the Chinese market.
Despite the fact that NVIDIA has historically required upfront payments, the new conditions reflect greater caution in light of the lack of regulatory clarity. This is partly due to the company’s experience last year when it had to write down $5.5 billion in inventory after the Trump administration’s ban on the sale of H20.
Currently, the company plans to fulfill initial orders using its existing stock and has begun coordinating with TSMC to increase production of the H200, scheduled for the second quarter of 2026.
With the growing local competition from manufacturers like Huawei and Cambricon Technologies, the pressure on NVIDIA is intensifying. A definitive statement from China regarding imports is expected in the coming days, while NVIDIA’s CEO, Jensen Huang, assures that the demand for the H200 is “quite high” and that the company is ready to meet it.