NVIDIA’s Neural Texture Compression (NTC)Tech Could Cut VRAM Use by 50% – Here’s What That Means
NVIDIA’s Neural Texture Compression (NTC) is NVIDIA’s latest graphics breakthrough might just be the technology that saves your 8GB GPU from early retirement. With video game textures and scene complexity ballooning in modern titles, VRAM requirements are skyrocketing in 2025.
But NVIDIA’s Neural Texture Compression (NTC), now in public demo form (See Below), promises to slash VRAM usage by up to 50% potentially revolutionizing how game engines handle textures and unlocking smoother performance on older or mid-range GPUs.
Nvidia’s NTC has been in development for a few years now and a quick search can show they initiated this about two years ago. It now appears to be in a Beta stage so attracting more attention by gamers.
And they’re not alone. Microsoft’s DirectX Cooperative Vectors, along with similar R&D efforts from AMD and Intel, are all targeting the same bottleneck: VRAM. The future could be bright if all goes as we hope.
How Does Neural Texture Compression Work?
NVIDIA’s Neural Texture Compression (NTC) is a revolutionary method of compressing game textures using artificial intelligence, specifically neural networks trained to recognize and reproduce visual patterns.
Instead of storing a full resolution texture directly on the GPU, NTC stores a compressed representation often just a fraction of the original size and then uses a lightweight neural network to reconstruct the full image in real time as it’s needed by the game engine.
This process is fundamentally different from older texture formats like DXT, BC1, or BC7, which use fixed algorithms to discard or average out data. Those formats are fast but often introduce visible compression artifacts or require a compromise in quality.
Nvidia’s NTC, on the other hand, learns how to intelligently preserve critical visual details (edges, color transitions, fine detail) while compressing redundant or less-noticeable areas far more aggressively.
The Best Part of NTC.
The best part? This decompression is handled by dedicated tensor cores or compute shaders, meaning there’s virtually no impact on gaming performance, even during fast motion or scene changes.
The result is smaller textures, dramatically lower VRAM usage, and no noticeable downgrade in visual quality an ideal solution for modern games where visual fidelity and performance must go hand in hand.
Is NTC the MAGIC BULLET?
No solution is ever perfect so lets break down the Positive and Negative aspects of the NVIDIA’s Neural Texture Compression (NTC) technology as we understand them at the moment. Again this is still a BETA product and it is marching along reasonably toward a public release in the future.
Balancing the Perspective.
Advantages of Neural Texture Compression (NTC)
- Massive VRAM Savings
NTC can reduce texture memory usage by up to 50%, allowing more assets to fit into GPU memory — crucial for 8GB and 12GB cards. - Preserves Visual Quality
Unlike older compression formats (e.g., BC1, BC7), NTC leverages AI to preserve fine details and reduce artifacts, even at high compression ratios. - Performance-Optimized
NTC decompression is fast and efficient, using Tensor Cores (on RTX GPUs) or compute shaders, with negligible impact on framerate. - Ideal for High-Fidelity Games
Simulation games like DCS World, X-Plane 12, and large open-world titles with tons of textures (e.g., Starfield, Microsoft Flight Simulator) benefit enormously. - Improved Load Times & Streaming
With smaller textures, games can load levels or stream assets faster, reducing stuttering in texture-heavy scenes.
Disadvantages of NTC
- Requires Developer Integration
Currently, NTC must be implemented at the engine or game level, which means developers need to encode textures into the new format and use NVIDIA’s SDKs or tools. - Limited to Compatible GPUs
Decompression may rely on NVIDIA RTX hardware (Tensor Cores), meaning older or non-NVIDIA GPUs might not support it — or require software fallbacks. - Not Yet an Industry Standard
It’s still in early stages — unlike BCx or ASTC formats that are universally supported across APIs, consoles, and mobile. - Potential Latency in Real-Time Applications
In extreme use cases (like VR), even minimal decompression latency could cause issues if not properly optimized. - Compression Overhead for Developers
Content creators must retrain workflows to use NTC tools or models, which adds time and complexity — especially for large studios or legacy projects.
Driver-Based or Game-Level Integration?
NTC is NOT likely to be implemented at the driver level alone at least not in a full, automatic way for these reasons:
- Texture compression is a pre-processing step done when assets are packed, not something easily retrofitted at runtime via drivers.
- Game engines must explicitly load and decode NTC texture formats using NVIDIA’s runtime tools.
- A driver might accelerate or streamline decompression (if supported), but it can’t magically convert all textures on-the-fly without massive compatibility and performance risks.
Will Developers Adopt it?
NTC will require developers to adopt it in their games similar to how RTX ray tracing, DLSS, or hardware mesh shaders work. But if integrated smartly, it could drastically reshape GPU memory requirements, especially in large-scale simulations and high-res gaming.
In the long run, we might see middleware plugins or game engine support (e.g., Unreal, Unity, or even custom DCS / Flight Sim engines) but not likely a universal “driver toggle” anytime soon.
Why VRAM Is a Problem in 2025
Most modern AAA games now recommend 12GB or even 16GB of VRAM for optimal performance at 1440p or 4K. But the global market is still flooded with popular 8GB cards like the RTX 3060/3070, RX 6600 XT, and GTX 1070 Ti many of which struggle to run newer titles at high settings due to limited VRAM.
VRAM Usage Example.
In a video from some time back Jabbers YouTube Channel showed examples of then Multithreading was released for DCS and the issues with stuttering at the time.
What was interesting was the scene he was using actually used nearly all the 24 Gigabytes of VRAM in his NVIDIA RTX 3090 or 4090. That’s the VRAM 24339 figure you can see on screen as well as running 55GB of RAM in this example.
This issue is even more pronounced in flight simulators, which notoriously load massive high-resolution texture sets, terrain tiles, and weather effects in real-time.
What VRAM do You USE normally in your favorite Game of Flight SImulator?
Please Let me know in the comments below.
Real-World Example: X-Plane 12 at 1440p (High Settings)
Let’s take X-Plane 12, one of the most graphically demanding flight simulators currently available. At 1440p resolution, with high texture settings and weather enabled, VRAM usage can easily reach:
- ~9.5 GB VRAM usage on the ground at a complex airport (e.g., KLAX or EGLL)
- This causes severe stuttering or texture pop-in on GPUs limited to 8GB VRAM.
Now imagine if Neural Texture Compression was implemented in the sim:
Estimated VRAM usage after 50% reduction: ~4.75 GB
This would not only allow 8GB cards to handle higher texture settings without overflow, but also reduce GPU thermal load, paging to system RAM, and improve average frame times delivering a smoother, more immersive sim experience!
High-End Example: DCS World Using 24 GB of VRAM – What Could NTC Do?
Some DCS World users with top-tier GPUs like the RTX 3090, 4090, or RX 7900 XTX have reported VRAM usage exceeding 20–24 GB under very specific, demanding conditions. This typically includes:
- 4K or 5K resolution
- Syria or South Atlantic maps
- High-resolution cockpit and terrain mods
- Full weather/cloud effects (e.g., overcast, dynamic storms)
- Multiplayer environments with dozens of AI units and complex scenarios
- Heavy track IR or VR usage
At this level, DCS is loading huge amounts of unique textures into memory to ensure maximum detail with minimal pop-in or stutter especially important for fast jet passes or low-level terrain following.
If NTC Were Applied to This 24GB Scenario:
Let’s assume NTC provides a 40–50% reduction in texture memory (as estimated by NVIDIA in their demo results).
Original VRAM usage: ~24 GB
With NTC (50% reduction): ~12 GB VRAM required
✅ Suddenly playable on 12 GB GPUs like the RTX 3080
✅ 16 GB cards like the RX 6800 XT or RTX 4080 Super would have massive headroom, avoiding stutter and future-proofing performance
✅ Even 8GB cards might run this config with reduced texture LODs, where only key assets use NTC
Why This Matters (Even for 24GB Users)
Even if you have 24GB VRAM now, that usage is not sustainable as textures continue to scale up, especially with:
- Future modules (F-4E, AH-64D fully textured interiors)
- Expanded map zones (e.g., global map)
- VR resolutions increasing (e.g., Varjo Aero, Pimax Crystal)
With NTC, those same users could:
- Run higher settings in VR without hitting memory limits
- Add AI units and assets with less performance risk
- Enable future-proofing for even higher-resolution texture packs or modules
And developers could:
- Include higher fidelity cockpits and terrain by default
- Add dynamic weather layers or real-time terrain changes without overloading systems
- Offer scalable options: NTC-optimized textures for low and mid-tier GPUs, and full uncompressed for enthusiasts
Summary:
Even in ultra-high-end scenarios where DCS World uses 24 GB of VRAM, NTC could effectively cut memory needs in half, opening up smoother gameplay for mid-tier users and increasing asset headroom for those with flagship GPUs — particularly in VR and complex missions.
How NTC Could Save Performance in DCS
If Neural Texture Compression were integrated into DCS World’s engine, it could cut the VRAM usage of textures by up to 50%, allowing for significantly more breathing room on existing GPUs.
Additional Benefits for DCS Pilots:
- Smoother frame pacing during fast transitions (e.g., low-level flight, SAM launches, explosions)
- Reduced reliance on system RAM paging, which causes spikes and microfreezes
- More stable performance in VR, where VRAM is a critical bottleneck
- Potential for larger, more detailed maps and future texture upgrades without a hardware tax
Example: Syria Map at 4K with F/A-18 Module
- Current VRAM usage: ~13.5 GB
- With NTC (~50% reduction): ~6.75–7 GB VRAM
- ✅ Now playable on RTX 3070 / RX 6700 XT (8GB cards)
- ✅ More headroom for shadows, clouds, and AI without stutters
In short, if NTC or a similar AI-driven texture compression system were adopted by Eagle Dynamics (or enabled via a middleware solution), it could radically transform the experience of DCS World especially for players on mid-range or aging GPUs.
What Actually Is Neural Texture Compression?
NTC uses AI-trained models to compress and decompress texture data with higher efficiency than traditional formats (like DXT1 or BC7). Rather than treating textures as static images, NTC treats them like probabilistic data, compressing repeated or redundant elements far more aggressively.
And because it’s handled via dedicated tensor cores (or compute shaders), the decompression is extremely fast with no noticeable loss in quality for most real-time applications.
Who Benefits the Most?
- Gamers with 8GB or 6GB GPUs – You may no longer need to upgrade to 12GB+ just to play the latest titles at 1440p.
- Developers – Can use higher-quality assets without blowing out memory budgets.
- Sim builders – Like those running X-Plane 12, DCS World, or Microsoft Flight Simulator 2020, where texture variety and terrain fidelity strain VRAM constantly.
- Laptop users – Integrated or mobile GPUs with tighter VRAM constraints could finally run larger games at higher fidelity.
Microsoft, AMD, and Intel Are Onboard Too.
NTC isn’t the only game in town. Microsoft’s DirectX Cooperative Vectors (DXCV) is in development and shares a similar goal: smarter vector-based texture handling that allows dynamic, efficient GPU memory allocation.
AMD’s Radeon Software team and Intel Arc engineers are also rumored to be working on AI-enhanced compression formats tailored for their hardware stacks — which is great news for GPU diversity and cross-platform support.
Credit Card Relief for Gamers?
If NTC lives up to its promise and sees wide adoption across game engines (Unreal Engine, Unity, etc.), it could delay the need to upgrade for thousands of gamers. Why fork out $700+ for a 16GB card when your RTX 3070 or RX 6600 XT might still be viable?
Even better reduced VRAM usage could mean lighter system requirements, shorter load times, and less GPU throttling, especially on laptops and small form factor builds.
Try It Yourself – NVIDIA’s Public Demo
NVIDIA has released a Public NTC technology SDK to show the tech in action, allowing developers and enthusiasts to compare visual fidelity and performance between traditional textures and compressed neural textures. Maybe a smart developer could come up with a way of integrating it externally as an app? We can hope we get a fast track way to less VRAM usage with NTC.
While the technology isn’t game ready yet, it’s generating serious buzz and if major engines integrate it soon, we could see real-world benefits as early as 2026.
NTC SDK
The NVIDIA NTC SDK is available with the latest BETA for those of you that are tech savvy and programmer savvy.
You can download RTX Neural Texture Compression (NTC) SDK v0.7.0 BETA Here:
Final Thoughts
Nvidia’s NTC technology as well as the Microsoft – AMD & INTEL versions of this tech are exciting to consider. In discovering this in a recent Tech Y/T channel video I thought it was a ready to go product.
The truth is that we will have to be patient as the new technology matures and then is hopefully adopted and integrated into our beloved flight sims.
By cutting VRAM usage in half, NVIDIA’s AI powered approach could stretch the life of aging cards, improve performance in sim heavy titles like X-Plane 12, and finally bring AAA gaming back within reach for mainstream systems.
Keep your eye on this tech as it’s not just another codec. It might just redefine how your GPU uses memory in the near future!
Author
Brendon McAliece (Aka Gunnie) is a military veteran with 23 years working on Jet Fighters, their weapons systems and ejection seat/module systems as well as munitions and R&D. Involved with flight simulation since the 1980s, he has flown LSA aircraft and all the major flight simulators over the years.
He is an Australian expat who has lived in Malaysia, UK, Saudi Arabia and now in Thailand. He is a multi-lingual blogger who loves to share his life experiences here on LetsFlyVFR.com and DreamingGuitar.com, with his lifestyle and Travel experiences Blog plus his Dreaming Coffee website.
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