Rumor
Nvidia mandates full upfront payment and non-refundable terms for H200 orders from Chinese customers
Tuesday, December 23, 2025 at 11:22 PM
Nvidia has reportedly implemented rigorous procurement terms for Chinese clients ordering H200 chips, requiring 100% upfront payment and prohibiting any order cancellations, refunds, or modifications once the transaction is finalized.
Context
Nvidia has mandated full upfront payments for its H200 AI chips in China, shifting from its previous policy of allowing partial deposits. This aggressive move transfers financial risk to buyers as Beijing reportedly instructs local firms to pause orders while considering mandates for domestic hardware. The new terms are strictly non-refundable and prohibit cancellations, protecting the company from sudden regulatory shifts or shipment blocks.
The scale of demand is immense, with Chinese companies ordering more than 2 million chips at approximately $27,000 each, representing a total value of roughly $54 billion. This order volume far exceeds Nvidia’s current inventory of 700,000 units. By securing total payment at the time of order, the company aims to avoid a repeat of the $5.5 billion inventory write-down it suffered during previous export bans.
These shipments also carry a 25% revenue-sharing tax payable to the US government. For investors, the upfront cash requirement serves as a critical hedge against a volatile geopolitical landscape where sudden policy changes could otherwise leave the manufacturer with stranded assets.
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