---
title: 'NVIDIA''s New AI Just Changed Everything'
source: 'https://youtube.com/watch?v=ZQAz_HrUq68'
video_id: 'ZQAz_HrUq68'
date: 2026-07-24
duration_sec: 490
channel: 'Two Minute Papers'
---

# NVIDIA's New AI Just Changed Everything

> Source: [NVIDIA's New AI Just Changed Everything](https://youtube.com/watch?v=ZQAz_HrUq68)

## Summary

NVIDIA has released Nemotron 3 Super, a fully open AI assistant that matches the performance of top closed frontier models from a year and a half ago. The release includes the model, a 51-page research paper, and the training dataset, marking a significant shift toward open AI systems.

### Key Points

- **Open AI Revolution** [00:00] — Most AI systems are proprietary, but NVIDIA's new model is free forever, with full transparency including a 51-page paper and dataset.
- **Model Specs** [01:12] — Trained on 25 trillion tokens, 120 billion parameters, roughly matching the best closed frontier models from 1.5 years ago.
- **Speed Breakthrough** [02:10] — NVFP4 version is 3.5x faster than BF16 version and up to 7x faster than similarly smart open models, with no meaningful accuracy loss.
- **Secret 1: NVFP4 Compression** [02:53] — Compresses mathematics by rounding numbers, leaving sensitive calculations untouched, resulting in up to 7x speedup without accuracy loss.
- **Secret 2: Multi-Token Prediction** [03:54] — Predicts 7 tokens at once instead of one, then verifies them in a single step, massively speeding up generation.
- **Secret 3: Mamba Layers** [04:22] — Efficient memory mechanism that reads input once and compresses notes, discarding filler words, enabling processing of massive data.
- **Secret 4: Stochastic Rounding** [05:10] — Adds carefully crafted noise that averages to zero, preventing error accumulation from rounding over many steps.
- **Limitations** [06:30] — Complex queries like assembling robotic cows can take nearly an hour to answer, suggesting need for faster hardware.

### Conclusion

NVIDIA's fully open Nemotron 3 Super model, with its speed and transparency, signals a paradigm shift from closed to open AI systems, potentially democratizing access to advanced AI.

## Transcript

Remember that most AI systems are proprietary,&nbsp; we have to pay a subscription for them,&nbsp;&nbsp; and no one knows how they work or&nbsp; what data they were trained on? Well, now hold on to your papers Fellow&nbsp; Scholars and check out this incredible work,&nbsp;&nbsp;
and when I first saw it, my jaw hit the floor.&nbsp; They absolutely knocked it out of the park.&nbsp;&nbsp; They spilled all the secrets. This is an AI&nbsp; assistant that is free for all of us forever,&nbsp;&nbsp;
but not just the model itself. They also&nbsp; gave us a 51-page research paper which&nbsp;&nbsp; might be the holy bible of creating&nbsp; such a system for now. Why is that?
and the dataset it was trained on as well. That is extraordinary. Usually&nbsp; something is always missing. Not here.
They call it Nemotron 3 Super and we are going&nbsp; to find out whether it is indeed super or not. Okay, so in goes 25 trillion&nbsp; tokens as training data,&nbsp;&nbsp;
and out comes a 120 billion parameter&nbsp; AI assistant that is how smart exactly? It roughly matches the best closed frontier&nbsp; models from about a year and a half ago.
Note that those models cost billions&nbsp; of dollars to train and every detail&nbsp;&nbsp; about them was kept in secret. And now, we just get this kind of&nbsp;&nbsp; stuff for free. That is mind blowing. This is&nbsp; amazing for us, consumers and Fellow Scholars.
So as you see, it is really smart. Up with some&nbsp; of the best open models out there in most tests,&nbsp;&nbsp; but note that it’s still a bit behind some&nbsp; areas. Here’s something that surprised me:&nbsp;
in this result, they showcase&nbsp; two versions of the new model,&nbsp;&nbsp; BF16 and NVFP4. They perform roughly the same in&nbsp; terms of accuracy, so why the big fuss about this?
Well, look at this. Holy mother of papers.&nbsp; Wow. Well, the NVFP4 version is about 3.5 times&nbsp;&nbsp; faster than their other model, and it is up to&nbsp; 7 times faster than similarly smart open models.
So the story is not just the similarly smart part,&nbsp;&nbsp; the story is that it is 7 times faster&nbsp; while it is similarly smart. Goodness.
Okay, so how on Earth did they&nbsp; do that? So here are 4 secrets&nbsp;&nbsp; they gave us from the paper, in very simple words.&nbsp; Dear Fellow Scholars, this is Two Minute&nbsp; Papers with Dr. Károly Zsolnai-Fehér.
Okay, NVFP4. What is that? This is a way for&nbsp; speeding up the AI to run a great deal faster&nbsp;&nbsp; by essentially compressing the mathematics it&nbsp; uses. Seeing a long number and rounding off&nbsp;&nbsp;
a few digits. You get a smaller format.&nbsp; Less work! What’s wrong with that? Well,&nbsp;&nbsp; everything. Normally, if you do that,&nbsp; you lose too much accuracy and the&nbsp;&nbsp;
system will output nonsense. However,&nbsp; here, scientists did it the smart way:&nbsp;&nbsp; they left the most sensitive calculations&nbsp; alone, and did this rounding for the rest,&nbsp;&nbsp; where it does not cause trouble. The result&nbsp; is that it runs up to 7 times faster than many&nbsp;&nbsp;
other techniques. And we saw that it gives&nbsp; us no meaningful loss in accuracy. Magic. But there is more magic. When other&nbsp; AI techniques write their answer,&nbsp;&nbsp;
they write it token by token. Let’s simplify&nbsp; by saying word by word. Writing one word at&nbsp;&nbsp; a time. But not this one. This one&nbsp; calculates several future words at&nbsp;&nbsp;
once. A whole sentence! Almost. Specifically,&nbsp; 7 tokens. And then the system verifies the 7&nbsp;&nbsp; tokens in one go. Another massive speed&nbsp; up. They call it multi-token prediction.
But why stop there? Let’s add even more magic!&nbsp; They showcased these weird things they call&nbsp; the mamba layers. What do these do? Well,&nbsp;&nbsp; traditional AI systems have a bit of a&nbsp; memory problem. They work like a student&nbsp;&nbsp;
who constantly re-reads the textbook over and&nbsp; over again when they are given a question. Scientists at NVIDIA say, that’s not the&nbsp; way to go. Memory is precious. So instead,&nbsp;&nbsp;
read the book only once, and take highly&nbsp; compressed notes. So this kind of memory&nbsp;&nbsp; remembers important details about the&nbsp; conversation. However, it is smart enough&nbsp;&nbsp; to throw away the filler words. Thus, this system&nbsp; can process massive amounts of data efficiently.
All this sounds glorious, but this still does&nbsp; not give us a working system. Why is that?&nbsp; Well, this is why. You see that there is a lot&nbsp; of addition here? That is the problem. The AI&nbsp;&nbsp;
generates your answer step by step, and because&nbsp; we rounded off the numbers, there is a little&nbsp;&nbsp; error. That’s not a problem. Here’s the problem.&nbsp; There are many steps, and the error is magnified&nbsp;&nbsp;
through each step. Imagine trying to walk to your&nbsp; car, which is a 100 steps away, but you feel a bit&nbsp;&nbsp; sluggish today and every single one of your steps&nbsp; is a bit smaller than it was before. What’s the&nbsp;&nbsp;
result? Well, of course, after a 100 steps,&nbsp; you are still really far away from your car! So what is the solution? Well, scientists solved&nbsp; this by adding back some random noise in the&nbsp;&nbsp;
system. But wait, this noise is carefully&nbsp; crafted in a way that it averages to zero.&nbsp;&nbsp; So your new steps are sometimes smaller,&nbsp; and sometimes bigger than they used to be,&nbsp;&nbsp;
but if you average them out, over a 100&nbsp; steps, you will be exactly at your car.&nbsp;&nbsp; So good! They call this stochastic&nbsp; rounding and it is a genius idea.
Now, not even this technique is perfect.&nbsp; For instance, when I give it my favorite&nbsp;&nbsp; question about assembling robotic cows,&nbsp; with lots of math, I like this guy a lot,&nbsp;&nbsp; but it thinks for almost an hour to get&nbsp; me an answer for that one. That’s a lot.&nbsp;&nbsp;
So if I have workloads like that, I like&nbsp; to run it on a much faster Lambda instance. But still I think the AI game has suddenly&nbsp; changed. Closed systems used to dominate. Now,&nbsp;&nbsp;
not anymore. It seems to me that Jensen&nbsp; at NVIDIA is not playing games here. It’s&nbsp;&nbsp; in the news that they are going to invest tens&nbsp; of billions of dollars into fully open systems&nbsp;&nbsp; like this. I am not a money person, I don’t&nbsp; know how that works exactly, but if we get to&nbsp;&nbsp;
own more amazing free AI systems. Well, sign&nbsp; me up for this one! What a time to be alive! And there is just so much more in the paper,&nbsp; I would definitely love to come back for at&nbsp;&nbsp;
least another video on it. Let me know&nbsp; in the comments if you would like that,&nbsp;&nbsp; and if you enjoyed this,&nbsp; subscribe, and hit the bell.
