TLDR

• Nvidia denied claims that it requires full upfront payments from Chinese customers for H200 AI chips.
• The company said it never asks customers to pay for products that have not been delivered.
• Nvidia’s response followed a January 8 Reuters report describing strict payment terms for H200 orders in China.
• Sources said stricter conditions were linked to uncertainty over Chinese regulatory approval for chip shipments.
• Nvidia stated its global payment policies remain consistent and tied to delivery confirmation.

Nvidia has denied reports claiming it demands full upfront payments from Chinese customers for its H200 AI chips. According to a Reuters report, the company said it does not require payment for products that have not been delivered.

Nvidia Responds to Payment Terms Report

Nvidia has officially stated that it does not ask for full upfront payment from any customer for undelivered products. In a statement shared with Reuters on Tuesday, the company said, “We would never require customers to pay for products they do not receive.” This was issued following concerns raised in a recent report about payment structures for Chinese clients purchasing the H200 chip.

Previously, Reuters had reported that Chinese customers faced tough conditions, including payment in full without cancellation or refunds. That article mentioned that buyers had to commit capital upfront, or in some cases, provide insurance or assets. The terms were described as strict due to uncertainty around approval from Chinese regulators.

Nvidia clarified that these terms were misinterpreted, and it has not changed its standard global payment practices. The company insisted that it follow consistent terms across regions and customer types. No confirmation was made about whether certain Chinese clients used deposits or insurance instead of direct payment.

Sources Describe Advance Commitments in China

Although Nvidia denied requiring upfront payments, one source familiar with Chinese orders offered a different view. Nvidia previously allowed partial payments but began enforcing stricter terms for the H200. The policy reportedly includes no refunds or adjustments after order placement due to regulatory delays.

These restrictions were linked to Beijing’s delayed clearance of AI chip shipments, adding financial risk to potential buyers. In the current situation, clients must commit funds or provide security without knowing if shipments will proceed. According to the source, Nvidia’s move was intended to manage business risks related to export approvals.

Another individual added that Nvidia had used deposit structures in previous Chinese sales instead of full upfront payments. The H200, being a new model, appears to have been treated differently under this approach. However, Nvidia did not confirm details on specific client transactions or contracts.

Recent Clarification and Current Status

Nvidia maintains that its global sales policies remain unchanged despite geopolitical tensions over chip exports. The spokesperson stated the firm avoids billing customers before shipping products, including those in China. All payments align with internal policies and depend on delivery confirmation.

Nvidia’s response came shortly after regulatory attention on U.S. chip sales to China intensified. Reuters originally reported that H200 orders were being secured with prepayments or financial guarantees. The company has now clarified that such practices are not mandatory or uniform.

As of now, Nvidia has not updated its delivery timelines for the H200 chips in question. The company is continuing its engagements with Chinese clients while awaiting export clearances. No additional updates on China-bound shipments have been provided.

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