Nvidia Demands Full Upfront Payment for H200 Chips in China Amid Geopolitical Risks

• Nvidia is now requiring full upfront payment for its H200 AI chips from Chinese customers, a significant change from previous partial deposit options.
• The new policy aims to mitigate risks associated with regulatory uncertainties and potential export control changes from both the US and China.
• China's approval for H200 sales is conditional, with Beijing seeking assurances against military or sensitive infrastructure use.
• Nvidia previously faced a $5.5 billion inventory write-down due to US export controls on H20 chips, highlighting regulatory impact.
• Despite tightened terms, Chinese demand for H200 chips remains strong, with over two million units ordered for 2026 delivery.

Why It Matters: Nvidia's new upfront payment policy in China reflects a strategic move to manage geopolitical and regulatory risks.