**Nvidia Cracks Down: Pay Cash Up Front for H200 AI Chips in China**
So, it’s official: Nvidia has changed its payment terms for the H200 AI chips in China. Now, clients need to cough up the full payment upfront, no more deposit payments or using business insurance as collateral. This is a significant shift from their previous approach, and it’s got everyone in the tech industry talking.
According to a report from Reuters, sources say that Nvidia is no longer offering any wiggle room on refunds or modifications to orders. The reason for this? The Chinese government is finally greenlighting the sale of Nvidia’s H200 chips within the country, but with some caveats. Beijing wants to make sure these chips aren’t ending up in the wrong hands, like with the military or state-owned companies.
Demand for the H200 remains strong, with Chinese firms placing orders for over 2 million units in 2026. Nvidia is responding by ramping up production, partnering with Taiwan Semiconductor Manufacturing Company (TSMC) to increase supply. This is all happening against a backdrop of challenging US-China relations.
Nvidia’s move to stiffen payment terms is likely a calculated risk-reduction strategy. The company knows from past experience that navigating these treacherous waters can be costly. Who remembers the Trump administration’s license requirements for exporting H20 chips to China? That debacle resulted in a $5.5 billion write-off for Nvidia.
With the tech industry’s top players like Nvidia navigating this complex landscape, it’s going to be interesting to see how things play out. Will the US-China tech relationship continue to be a minefield? I’ll be keeping an eye on it.
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