Nvidia Corp (NASDAQ:NVDA) is tightening its terms for selling H200 artificial intelligence chips to China as it tries to reopen a key market while navigating shifting regulatory signals in both Washington and Beijing.
Nvidia Shifts Risk To Chinese Buyers
Nvidia now requires Chinese customers to pay in full upfront for H200 orders and accept strict, no-flexibility terms, Reuters reported on Thursday, citing people familiar with the arrangements.
The policy goes beyond Nvidia's prior approach, which sometimes allowed partial deposits.
In limited cases, some buyers can use commercial insurance or asset collateral instead of cash, the sources told Reuters.
The tighter structure effectively pushes regulatory risk onto customers.
Beijing Prepares Conditional Green Light For H200 Imports
Chinese officials are preparing to approve some H200 imports as soon as this quarter for select commercial uses, while restricting access for the military, sensitive government agencies, critical infrastructure, and state-owned enterprises, Bloomberg reported on Thursday, citing people familiar with the deliberations.
The framework mirrors earlier Chinese restrictions applied to certain foreign products.
Regulators have also asked some Chinese tech companies to pause H200 orders temporarily.
Officials are weighing how many domestically produced chips each buyer must purchase alongside imported Nvidia chips.
Demand Surges, But Supply And Politics Still Set The Ceiling
Nvidia faces intense demand from Chinese cloud and internet players that see the H200 as a major upgrade from the H20, which is now blocked in China.
Executives have said demand is strong and that the company has ramped its supply chain, but they've also indicated the company lacks direct visibility into Beijing's timing for approvals.
Nvidia is also managing capacity constraints as it transitions from Blackwell to the next Rubin platform and competes for production capacity at Taiwan Semiconductor Manufacturing Co (NYSE:TSM).
Nvidia became the first company to hit the $4.5 trillion market cap in October.
NVDA Price Action: Nvidia shares were up 0.33% at $189.74 during premarket trading on Thursday, according to Benzinga Pro data.
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