Pay and pray: Nvidia reportedly wants money up front for Chinese H200 orders (www.theregister.com)

Nvidia is reportedly requiring upfront payments for orders of its high-performance H200 GPUs destined for China, with no option for refunds if the Chinese government blocks imports. This decision comes as Beijing may permit shipments to select customers as early as this quarter, following the lifting of restrictions that previously limited Nvidia's sales. The H200 GPUs, lauded for their superior performance—approximately six times that of their predecessor, the H20—have garnered immense interest in China, with companies like ByteDance planning substantial investments in the technology. This move is significant for the AI/ML community as it underscores the complexities surrounding U.S.-China trade relations and the growing demand for advanced AI chips. With around 700,000 H200 units in its inventory, Nvidia is already feeling strain from high demand and may pursue increased production despite the risks associated with reramping older technology. The situation illustrates the precarious balance Nvidia must navigate between leveraging its technology's capabilities and mitigating financial risks tied to geopolitical tensions.