Nvidia H200 China Payment Terms

What happened

Nvidia reportedly introduced a revised payment condition for its H200 AI chips, requiring Chinese customers to remit full payment upfront. This alters the previous payment structure, transferring the financial obligation to the customer prior to securing regulatory approvals from both the US and Beijing. This change specifically applies to H200 AI chip transactions within the Chinese market, modifying the commercial terms of sale.

Why it matters

This introduces a tightened financial dependency for procurement and increases exposure to regulatory uncertainty for Chinese customers. The burden of capital outlay and potential loss due to ungranted export or import licenses now rests with the buyer. This reduces the financial risk visibility for Nvidia while increasing the due diligence requirements for customer finance and legal departments regarding international trade compliance and capital allocation.