Nvidia is requiring Chinese companies ordering its H200 chip to provide full payment up-front, amid uncertainty over how China will regulate imports of the chips, Reuters reported.
The chipmaker’s terms for Chinese companies ordering the chip give them no option to cancel, ask for refunds or change configurations once an order is placed, the report said, citing unnamed people.
Uncertainty
In some circumstances, clients may provide commercial insurance or asset collateral as an alternative to cash payment, the report said.
Previously, customers were sometimes able to place a deposit rather than make full payment up-front, according to the report.
The unusually stringent terms are due to uncertainty over what conditions China will place on potential H200 imports, the report said.
The country’s regulators have been considering the offer of H200 chips since they were offered by the White House in early December, in a reversal of earlier export controls.
The Chinese government is seeking to take advantage of the H200 chips while protecting China’s nascent AI chip industry, reports have said.
Approvals expected
China plans to approve some H200 imports as soon as this quarter for select commercial uses, while blocking them for the military, sensitive government or critical infrastructure uses, and state-owned enterprises, over security concerns, Bloomberg reported on Thursday.
In recent days the Chinese government has asked some domestic companies to pause their H200 orders as officials decide how many domestically produced chips companies will be required to buy alongside H200 chips, The Information reported this week.
