the NVIDIA booth at the 3rd China International Supply Chain Expo in Beijing, China, on July 20, 2025
Image Credits:Costfoto/NurPhoto / Getty Images

Nvidia’s reportedly asking Chinese customers to pay upfront for its H200 AI chips

Nvidia is now requiring its customers in China to pay upfront in full for its H200 AI chips even as approval stateside and from Beijing remains uncertain, Reuters reported, citing anonymous sources.

The chipmaker isn’t leaving any room for refunds or changes to orders, the report said.

While some customers may be allowed to use commercial insurance or asset collateral, the terms are far stricter than Nvidia’s earlier policies, which sometimes permitted partial deposits, Reuters reported.

“We do not require upfront payment and would never require customers to pay for products that they do not receive.” – Nvidia spokesperson told TechCrunch on Jan 13, 2026.

China is expected to allow Nvidia to sell its H200 chips in the country, per Bloomberg, though Beijing wants to prevent the chips from being used by its military, state-owned firms, and sensitive infrastructure concerns.

Despite the challenges, demand for Nvidia’s H200 remains strong, and Chinese companies have reportedly placed orders for more than 2 million of the GPUs in 2026, prompting the chipmaker to ramp up production.

Nvidia is trying to strike a careful balance between meeting strong demand for its chips while managing political risk in both the U.S. and China. The U.S. chipmaker suffered costly setbacks when the Trump administration said it would need a license to export its H20 chips to China, forcing the company to write down $5.5 billion worth of inventory.

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This article was updated on Jan 13, 2026, to include comments from Nvidia.

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