U.S. tech giant Nvidia (NVDA) is asking its Chinese customers seeking H200 AI chips for upfront payment amid concerns about Beijing’s approval of shipments, Reuters reported, citing two people familiar with the matter.
The terms eliminate options for cancellations, refunds, or configuration changes post-order, marking a shift from prior practices that sometimes allowed deposits.
In special circumstances, clients may provide commercial insurance or asset collateral as an alternative to cash payment, one of the people said.
For H200, the company has stricter policies due to a lack of clarity, the report added. The new approach likely aids Nvidia (NVDA) in mitigating financial risks amid unclear timelines.
Nvidia (NVDA) did not immediately respond to Seeking Alpha’s request for comment.