Nvidia has clarified that it does not require customers to make upfront payments for its H200 artificial intelligence (AI) chips, despite a recent Reuters report suggesting that the company had imposed unusually stringent terms for Chinese clients. In a statement issued on Tuesday, a spokesperson for the U.S. chipmaker responded to the claims, emphasizing that Nvidia “would never require customers to pay for products they do not receive.”

The controversy arose following a report published on January 8, which highlighted that Nvidia had set full upfront payment terms for Chinese customers purchasing its H200 chips. The stricter payment conditions were reportedly tied to the uncertainty surrounding Chinese regulatory approval for chip imports, which has raised concerns about whether shipments would be permitted.

While Nvidia acknowledged that advance payment terms have sometimes been applied to Chinese clients, the company clarified that these have typically involved deposits rather than full upfront payments. However, for the H200 chips, Nvidia has been particularly cautious in enforcing these terms due to the lack of clarity on whether Chinese regulators will approve the shipments.

This payment structure, if applied, would shift the financial risk to Nvidia’s customers. These clients would be required to commit substantial capital without the certainty that the shipments would receive approval from Chinese authorities or that they would be able to deploy the AI technology as planned.

Despite these concerns, Nvidia’s response emphasizes that it remains committed to fair business practices and aims to support its customers through a transparent transaction process.

As the global demand for AI chips continues to surge, especially in China, Nvidia’s policies regarding payments and regulatory hurdles will likely be closely monitored by both customers and industry observers. The outcome of these regulatory negotiations will significantly influence the chipmaker’s ability to supply its products to key markets.