Leaked Footage Shows Chinese Factories Dismantling Thousands of RTX 5090 GPUs for AI Servers

Industrial-Scale Conversion Operations Revealed

Footage shared by Hong Kong hardware outlet HKEPC has exposed the scale of grey-market operations in China, where industrial-scale Chinese factories are systematically dismantling RTX 5090s to meet surging AI hardware demand2

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. The leaked video shows workshops filled with hundreds of brand-new Nvidia GeForce RTX 5090 GPUs from multiple vendors, including premium models like the ROG Astral RTX 5090 that currently retails for $10,000, and even Nvidia's coveted Founders Edition cards3

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Skilled technicians meticulously desolder the GB202 silicon and GDDR7 memory chips from these consumer graphics cards, then transplant the components onto custom AI server boards designed specifically for high-density deployments1

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. The GPU die and memory desoldered from retail cards are paired with dual-slot blower designs tailored for server environments where space constraints and cooling requirements differ dramatically from gaming systems3

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From Gaming Cards to AI Compute Clusters

These repurposed RTX 5090 cards ultimately power AI compute clusters in data centers and AI labs across China1

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. The conversion process transforms consumer gaming hardware into AI workhorses capable of handling intensive computational tasks. The RTX 5090's substantial 32GB of fast GDDR7 VRAM and excellent AI capabilities make it particularly valuable for this grey-market repurposing3

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After desoldering and transplanting components onto custom PCBs, workers test and validate the modified cards before repackaging them for shipment to clients1

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. These custom AI server boards accommodate the cards easily inside server racks where thermal and spatial requirements demand different form factors than traditional gaming setups3

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Supply Chain Impact and Market Consequences

The scale of these operations is staggering. Many conversion factories are scattered throughout China, and reports suggest thousands of Nvidia GeForce RTX 5090 GPUs are being repurposed daily1

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. Middlemen in these grey-market supply chains aggressively hunt for RTX 5090 stock to fuel these operations, contributing to the GPU shortage that has left U.S. retailers with virtually no inventory1

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Custom GeForce RTX 5090 graphics cards now command eye-watering prices starting at $8,5001

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. The combination of Nvidia reportedly halting RTX 5090 production to redirect GB202 silicon toward higher-margin professional GPUs like the RTX Pro 6000 Blackwell, alongside aggressive grey-market recycling, has created unprecedented scarcity1

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Export Controls and Regulatory Questions

The footage raises questions about supply chain movements and compliance with export controls. The full RTX 5090 is subject to restrictions for China, with Nvidia offering a lower-performance RTX 5090D variant for that market2

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. However, the video alone cannot establish whether specific shipments violated applicable rules or demonstrate that Nvidia is selling complete RTX 5090 boards directly into the Chinese market2

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Some reports suggest Nvidia may turn a blind eye to substantial RTX 5090 stock entering China, as the banned GPU continues flowing into the region despite restrictions3

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. The apparent profitability of these operations for all parties involved suggests the practice may persist3

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Unexpected Workaround for Consumers

An unusual market dynamic has emerged: prebuilt gaming systems containing RTX 5090s sometimes cost less than standalone graphics cards while offering fully assembled systems with manufacturer warranties1

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. This counterintuitive pricing reflects how thoroughly the conversion operations and supply constraints have disrupted traditional GPU markets. What was once unthinkable—buying an entire gaming system for less than a single high-end graphics card—has become reality in today's chaotic market1

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