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Exactly. What the AI part of it is now is for the 'fit' of data - in theory you don't even need to have tensor cores to see that benefit, you just need the right model for clamping, which is what's usually manually done for TAA reconstruction already. In practice it doesn't work so well because not all studios are created equal, but we can see that Massive Ubisoft can do this as good or better than DLSS 2.0 with The Division 2's TAA. Not to mention - DLSS doesn't always work out so well either, with it being unable to reconstruct raytraced reflections in many cases (CP2077, WD:L).
Where Nvidia wins, as always, is at marketing. I said even from day 1 when they had shitty DLSS 1.0 - they win, because people are stupid and they want to self-deceive anyway, so if you just tell them the AI will even blow them it's that good they'll believe it.
DLSS 1.0 was universally panned though, by anyone Nvidia marketing hoped to reach. The overwhelming consensus was definitely hugely negative, to the point FidelityFX CAS was generally believed to be better, particularly on 1440p > 4K. This is likely the primary reason AMD were caught with their pants down, forced to unveil and sell cards with promises of nondescript features that were nearly a year out.
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