
Editor's note: This post is part of the AI Decoded series, which demystifies AI by making the technology more accessible, and showcases new hardware, software, tools and accelerations for RTX PC and workstation users.
At Gamescom this week, NVIDIA announced that NVIDIA ACE - a suite of technologies for bringing digital humans to life with generative AI - now includes the company's first on-device small language model (SLM), powered locally by RTX AI.
The model, called Nemotron-4 4B Instruct, provides better role-play, retrieval-augmented generation and function-calling capabilities, so game characters can more intuitively comprehend player instructions, respond to gamers, and perform more accurate and relevant actions.
Available as an NVIDIA NIM microservice for cloud and on-device deployment by game developers, the model is optimized for low memory usage, offering faster response times and providing developers a way to take advantage of over 100 million GeForce RTX-powered PCs and laptops and NVIDIA RTX-powered workstations.
The SLM Advantage An AI model's accuracy and performance depends on the size and quality of the dataset used for training. Large language models are trained on vast amounts of data, but are typically general-purpose and contain excess information for most uses.
SLMs, on the other hand, focus on specific use cases. So even with less data, they're capable of delivering more accurate responses, more quickly - critical elements for conversing naturally with digital humans.
Nemotron-4 4B was first distilled from the larger Nemotron-4 15B LLM. This process requires the smaller model, called a student, to mimic the outputs of the larger model, appropriately called a teacher. During this process, noncritical outputs of the student model are pruned or removed to reduce the parameter size of the model. Then, the SLM is quantized, which reduces the precision of the model's weights.
With fewer parameters and less precision, Nemotron-4 4B has a lower memory footprint and faster time to first token - how quickly a response begins - than the larger Nemotron-4 LLM while still maintaining a high level of accuracy due to distillation. Its smaller memory footprint also means games and apps that integrate the NIM microservice can run locally on more of the GeForce RTX AI PCs and laptops and NVIDIA RTX AI workstations that consumers own today.
This new, optimized SLM is also purpose-built with instruction tuning, a technique for fine-tuning models on instructional prompts to better perform specific tasks. This can be seen in Mecha BREAK, a video game in which players can converse with a mechanic game character and instruct it to switch and customize mechs.
ACEs Up ACE NIM microservices allow developers to deploy state-of-the-art generative AI models through the cloud or on RTX AI PCs and workstations to bring AI to their games and applications. With ACE NIM microservices, non-playable characters (NPCs) can dynamically interact and converse with players in the game in real time.
ACE consists of key AI models for speech-to-text, language, text-to-speech and facial animation. It's also modular, allowing developers to choose the NIM microservice needed for each element in their particular process.
NVIDIA Riva automatic speech recognition (ASR) processes a user's spoken language and uses AI to deliver a highly accurate transcription in real time. The technology builds fully customizable conversational AI pipelines using GPU-accelerated multilingual speech and translation microservices. Other supported ASRs include OpenAI's Whisper, a open-source neural net that approaches human-level robustness and accuracy on English speech recognition.
Once translated to digital text, the transcription goes into an LLM - such as Google's Gemma, Meta's Llama 3 or now NVIDIA Nemotron-4 4B - to start generating a response to the user's original voice input.
Next, another piece of Riva technology - text-to-speech - generates an audio response. ElevenLabs' proprietary AI speech and voice technology is also supported and has been demoed as part of ACE, as seen in the above demo.
Finally, NVIDIA Audio2Face (A2F) generates facial expressions that can be synced to dialogue in many languages. With the microservice, digital avatars can display dynamic, realistic emotions streamed live or baked in during post-processing.
The AI network automatically animates face, eyes, mouth, tongue and head motions to match the selected emotional range and level of intensity. And A2F can automatically infer emotion directly from an audio clip.
Finally, the full character or digital human is animated in a renderer, like Unreal Engine or the NVIDIA Omniverse platform.
AI That's NIMble In addition to its modular support for various NVIDIA-powered and third-party AI models, ACE allows developers to run inference for each model in the cloud or locally on RTX AI PCs and workstations.
The NVIDIA AI Inference Manager software development kit allows for hybrid inference based on various needs such as experience, workload and costs. It streamlines AI model deployment and integration for PC application developers by preconfiguring the PC with the necessary AI models, engines and dependencies. Apps and games can then orchestrate inference seamlessly across a PC or workstation to the cloud.
ACE NIM microservices run locally on RTX AI PCs and workstations, as well as in the cloud. Current microservices running locally include Audio2Face, in the Covert Protocol tech demo, and the new Nemotron-4 4B Instruct and Whisper ASR in Mecha BREAK.
To Infinity and Beyond Digital humans go far beyond NPCs in games. At last month's SIGGRAPH conference, NVIDIA previewed James, an interactive digital human that can connect with people using emotions, humor and more. James is based on
More from Nvidia
04/08/2026
Surging AI demands are driving the need for massive datasets and context windows that burst past the confines of system memory.
But rising needs aren't me...
04/08/2026
For robotaxis and other autonomous vehicles (AVs), the hardest problems aren'...
04/08/2026
Members of the Open Secure AI Alliance - now more than 120 organizations strong - are developing new guidelines to strengthen agentic AI cybersecurity as the an...
30/07/2026
Back to school means balancing assignments, deadlines and downtime. GeForce NOW makes it easy to have it all.
With cloud gaming, everyday laptops used for clas...
28/07/2026
As a discerning AI investor who values style and substance, Sarah Guo knows this...
27/07/2026
Open source software is a critical pillar of the global economy. It underpins cloud computing, financial services, manufacturing, telecommunications, government...
26/07/2026
The complexity of modern chip design continues to grow as engineering teams work to develop increasingly sophisticated CPUs, GPUs and AI systems. To help meet t...
23/07/2026
At this week's AI Summit in San Francisco, South Korean President Jae Myung Lee and some of the country's top business leaders and researchers are meeti...
23/07/2026
Lock in and load up the cloud. GFN Thursday brings fresh updates and new adventu...
22/07/2026
NVIDIA founder and CEO Jensen Huang today visited the Naval Postgraduate School in Monterey, California, to commission an NVIDIA DGX GB300 system - bringing one...
22/07/2026
Before a healthcare robot can be useful in the real world, it has to learn how the physical world pushes back. Anatomy varies. Instruments bend, press, slip and...
21/07/2026
The AI era runs on AI infrastructure. Many of these advanced systems are built a...
21/07/2026
AI has entered the gigascale era.
The world's most advanced AI factories are bringing together hundreds of thousands of GPUs and CPUs to train frontier mod...
21/07/2026
NVIDIA Vera Rubin is here, and it's going gigascale.
Vera Rubin NVL72 produ...
20/07/2026
At this year's SIGGRAPH conference, running through Thursday, July 23, in Lo...
20/07/2026
Erin Davis calls it the SuperDuperPOD. That's two things in one name: phar...
17/07/2026
Think of a professional athlete. What separates elite performers is what happens...
16/07/2026
Onimusha: Way of the Sword is coming to GeForce NOW at launch, with the playable...
15/07/2026
General-purpose robots and autonomous machines are moving from research labs to ...
15/07/2026
Home to leading manufacturers, robotics pioneers, infrastructure builders and iconic gaming companies, of course, Japan is one of the world's centers of AI ...
14/07/2026
Editor's note: This post is part of the Nemotron Labs blog series, which exp...
14/07/2026
Power is AI infrastructure's inescapable constraint. How many tokens an AI factory can generate within a fixed power budget determines its revenue and profi...
09/07/2026
This GFN Thursday brings more games, more power and more ways to play on GeForce NOW.
The cloud gaming service is expanding with a new GeForce RTX 5080-powere...
08/07/2026
NVIDIA Nemotron 3 Ultra is offering leading performance at lower cost than top c...
07/07/2026
Max single-threaded CPUs at scale are a new category of CPUs built for the agentic AI era.
Across the creation and deployment of an agentic system, the CPU is...
06/07/2026
Open source AI has shown how quickly developers can innovate when models, data a...
06/07/2026
Nations have long invested in domestic infrastructure to advance their economies, protect and use their data, and take advantage of technology opportunities in ...
06/07/2026
Every year, the International Conference on Machine Learning (ICML) reveals where thousands of AI researchers have decided to put their work.
This year's ...
02/07/2026
Summer is heating up - and GeForce NOW is taking players along for the ride.
Start the month with Monopoly: Star Wars Heroes vs. Villains, bringing a galaxy fa...
01/07/2026
As AI moves from model development to production inference, compute demand is ac...
30/06/2026
Life sciences has entered an era of computational scale, and for more than a dec...
30/06/2026
As organizations move from AI pilots to production AI factories, infrastructure decisions have shifted from peak chip specifications to cost per token: how many...
30/06/2026
Editor's note: This post is part of Into the Omniverse, a series focused on ...
29/06/2026
Anthropic's Claude models in Microsoft Foundry - hosted on Microsoft Azure a...
29/06/2026
Showcasing the importance of open source innovation in American AI, Palantir'...
25/06/2026
Summer savings are heating up. From the Steam Summer Sale to GeForce NOW membership discounts, this week's GFN Thursday delivers double the deals and more w...
23/06/2026
Building AI systems at scale is demanding, requiring low-latency inference, fast vector search, strong GPU price-performance and infrastructure that can grow wi...
23/06/2026
News Highlights:
NVIDIA technology runs 81% of the TOP500 and 90% of the systems new to the list.
26 systems on the TOP500 adopted the NVIDIA Grace CPU, up ei...
23/06/2026
Editor's note: This post is part of the Nemotron Labs blog series, which explores how the latest open models, datasets and training techniques help business...
22/06/2026
Telecom operators have seen remarkable returns from using generative AI to automate network management, customer care and back-office operations. Most of that i...
22/06/2026
The next era of AI will not be defined by compute alone. Its growth will be dete...
22/06/2026
Mission, Vision and Veritas - new Los Alamos National Laboratory (LANL) supercom...
22/06/2026
At the ISC conference running in Hamburg this week, NVIDIA is introducing new so...
22/06/2026
For the past two years, the U.S. National Science Foundation's National Arti...
22/06/2026
JUPITER, Europe's first exascale supercomputer at Germany's Forschungszentrum J lich, runs on NVIDIA Grace Hopper Superchips and NVIDIA Quantum-X800 Inf...
21/06/2026
Hot tubs sit at about 38 to 40 degrees Celsius, warm enough that most people can only soak for about 15 minutes. NVIDIA's newest AI servers can run their co...
18/06/2026
In a consequential grid infrastructure decision, the Federal Energy Regulatory C...
18/06/2026
Play favorite titles from popular game libraries, keep progress synced and jump ...
18/06/2026
The digital era gave the advertising and marketing industry speed; the AI era is giving it autonomous operations.
For companies building next-generation techn...
17/06/2026
A year ago at NVIDIA GTC Paris at VivaTech, France laid out plans to advance local AI - from new AI factories and national compute capacity to open frontier mod...