Nvidia is changing its payment terms for H200 AI chips in China, now requiring customers to pay in full upfront. This shift comes amid uncertainty over regulatory approvals from both the U.S. and China. According to Reuters, the new policy eliminates any options for refunds or order modifications. Some customers may still use commercial insurance or asset collateral, but these terms are stricter than Nvidia's previous arrangements, which allowed for partial deposits. Despite these challenges, demand for the H200 remains robust. Chinese companies have reportedly ordered over 2 million of these GPUs in 2026, prompting Nvidia to increase production. The company is navigating a complex political landscape, having previously faced setbacks when the Trump administration mandated licensing for exporting its H20 chips to China, resulting in a $5.5 billion inventory write-down. While there are indications that China may permit the sale of Nvidia's H200 chips, the government is keen to restrict their use in military applications and sensitive infrastructure. Nvidia's spokesperson emphasized that the company does not require upfront payments for products that are not delivered, contradicting the reports about the new payment policies.