Nvidia Tightens Payment Terms on H200 AI Chips for Chinese Buyers

Key Moments

Stricter Payment Terms Amid Regulatory Uncertainty

Nvidia has set strict commercial terms for Chinese buyers of its H200 AI processors, according to two people familiar with the situation. Buyers must pay the full amount upfront and cannot cancel, request refunds, or change configurations once the order is placed.

Some customers can provide commercial insurance or asset collateral instead of cash, one source noted.

Previously, Chinese clients sometimes paid only a deposit rather than the full amount. Nvidia now enforces tighter terms due to uncertainty about Chinese regulatory approvals.

Both sources spoke anonymously because the details are not public. Nvidia and China’s industry ministry did not respond to requests for comment.

Scale of Chinese Demand for H200

Chinese tech firms have placed orders for over 2 million H200 chips, priced around $27,000 each, Reuters reported last month. This demand surpasses Nvidia’s reported stock of 700,000 units.

Chinese chipmakers, such as Huawei, have released AI processors like the Ascend 910C. However, these are still behind Nvidia’s H200 for large-scale AI model training.

Recently, Beijing told some firms to pause H200 orders temporarily while regulators decide how many domestic chips each customer must buy alongside every H200. The pause was first reported by The Information.

🇨🇳 CHINA RUSHES TO BUY NVIDIA AI CHIPS

Nvidia is thinking about making more H200 AI chips because Chinese tech giants like Alibaba and ByteDance moved fast to buy them once the U.S. reopened the door on exports.

The H200 is an extremely powerful AI chip made by Nvidia and built… pic.twitter.com/JbR9To7HHK

— Mario Nawfal (@MarioNawfal) December 13, 2025

Customer Interest and Nvidia’s Supply Response

CEO Jensen Huang said demand for H200 chips is “quite high.” He added that Nvidia has “fired up our supply chain” to increase production.

Huang did not expect a formal announcement from Chinese authorities but noted, “if the purchase orders come, it’s because they’re able to place purchase orders.”

Policy Reversals and Risk Transfer

The strict payment model shows Nvidia’s delicate position. It must balance strong Chinese demand with regulatory risks in the U.S. and China.

The Biden administration had blocked advanced AI chip exports to China, but Trump’s administration reversed the policy last month. H200 sales are now allowed, subject to a 25% U.S. fee.

Previously, Nvidia wrote down $5.5 billion in H20 inventory after the Trump administration blocked H20 sales to China. Although the U.S. reversed the ban, China imposed its own restriction on H20 shipments.

Under the new H200 structure, buyers assume financial risk. They must commit capital upfront even if Beijing may not approve the shipments or allow deployment as planned.

Performance Positioning of the H200

Major Chinese internet firms, including ByteDance, see the H200 as a big improvement over current alternatives. It is Nvidia’s second-most powerful chip and offers roughly six times the performance of the H20, which is blocked and was tailored for China.

Production Plans and Capacity Constraints

Nvidia plans to fulfill initial Chinese orders from existing inventory. The first H200 shipments are expected before the Lunar New Year in mid-February.

The company is working with Taiwan Semiconductor Manufacturing Co. to boost production. Additional manufacturing should begin in Q2 2026.

Expanding capacity is challenging. Nvidia is moving from its Blackwell chip to the Rubin generation while competing with other buyers, such as Alphabet’s Google, for limited TSMC production slots.

H200 Order and Capacity Snapshot