Nvidia's H200 Chip Payment Controversy: No Upfront Payments

Nvidia clarifies it does not require upfront payments for its H200 chips, countering claims of stringent payment terms for Chinese customers. Although standard terms included advance payments, the focus is on customer financial risk due to potential regulatory hurdles in China affecting chip shipments.

Nvidia has asserted it does not mandate upfront payments for its H200 chips, pushing back against allegations of demanding strict payment terms from Chinese clients. The U.S. chipmaker emphasized customers are not charged for undelivered products.

This response comes after reports surfaced on January 8 claiming Nvidia imposed rigorous conditions on Chinese buyers, including full upfront payment, underlining a shift from previous practices that allowed partial deposits.

The rigid stance for the H200 stems from uncertainties over Chinese regulatory approvals for chip shipments, with customers bearing the financial burden amid these ambiguities.

(With inputs from agencies.)