Key Points
- Nvidia says it does not require upfront payment for H200 AI chips, rejecting earlier reports of strict terms.
- The company stressed it would not make customers pay for products before receiving them, amid regulatory uncertainty in China.
- Clarification aims to reassure buyers and clarify Nvidia’s sales practices for high-end AI hardware.
Nvidia has clarified that it does not require customers to pay upfront for its high-performance H200 artificial intelligence chips, directly countering earlier reports about strict payment terms for Chinese buyers. The U.S. semiconductor giant said it “would never require customers to pay for products they do not receive,” emphasising that no customer must pay in advance before shipment.
This statement came after commentary that Nvidia had imposed unusually stringent terms for some Chinese transactions due to regulatory uncertainties over whether the chips would be approved for import or use in the world’s largest AI market.
Nvidia noted that while standard terms sometimes involve advance payments or deposits, the notion of mandatory full upfront payment was inaccurate and not its policy.
The clarification aims to reassure global customers and partners about the company’s sales practices amid broader geopolitical tensions affecting chip exports to China. It also highlights the complex environment tech companies face when navigating export controls and approval processes for advanced AI semiconductors in major markets.
Nvidia’s H200 chips, part of its high-end AI accelerator lineup, have attracted strong interest from data-centre operators and AI developers worldwide, raising both demand and scrutiny from regulators.
Analysts say transparent sales terms may help ease hesitation among buyers concerned about investment risk amid unclear Chinese regulatory timing.
The company’s response underscores how supply chain dynamics and compliance issues can influence global technology trade, especially for critical AI hardware.
Nvidia’s step to publicly correct the narrative may also soothe investor concerns and broader market uncertainty around the chips’ commercial rollout.
The episode comes as the U.S. government recently moved to allow Nvidia to export H200 chips to China under certain conditions, adding further nuance to negotiations between tech firms and regulators.
