The U.S. chipmaker has set unusually strict terms, demanding full payment for orders with no option to cancel, request refunds, or modify configurations after placement, the sources said, News.Az reports, citing Reuters.
In special cases, customers may provide commercial insurance or offer asset collateral instead of cash payment, one of the sources added.
Nvidia's standard terms for Chinese clients have previously included advance payment requirements, but they were sometimes allowed to place a deposit rather than make a full payment upfront, the person said. But for the H200, the company has been particularly strict in enforcing conditions given the lack of clarity on whether Chinese regulators would greenlight the shipments, the person added.
Both people spoke on condition of anonymity because the information is not public. The stepped-up policy enforcement has not been reported previously. Nvidia and China’s industry ministry had yet to respond to requests for comment at the time of publication.
Chinese technology companies have placed orders for more than 2 million H200 chips that are priced at around $27,000 each, Reuters reported last month, exceeding its inventory of 700,000 of the chips.
While Chinese chipmakers like Huawei have developed AI processors including the Ascend 910C, their performance still lags behind Nvidia's H200 for large-scale training of advanced AI models.
Beijing in recent days asked some Chinese tech companies to temporarily pause their H200 chip orders as regulators are still deciding how many domestically produced chips each customer will need to buy alongside each H200 order, the second person said.
Nvidia CEO Jensen Huang said on Tuesday that customer demand for H200 chips was "quite high" and that the company has "fired up our supply chain" to ramp up production.
Huang said he did not expect China's government to make a formal declaration on approval, but "if the purchase orders come, it's because they're able to place purchase orders."
