News Intel Details XeSS Quality Mode With GDC Demos

The key thing to remember about Intel XeSS is that it is an AI-based Super Sampling technique for real time rendering that doesn't need per-title training.
This suggests is a driver-level implementation? (ie RSR)

At the time of writing we don't have an ETA for the launch of XeSS or any games that will work with this new upscaler.
Wait....what? If they're not ALL supported, then this suggests it's an in-game setting implementation. (ie FSR/DLSS)

It is optimized for Xe GPUs in that it will perform best with the Arc Alchemist Xe Matrix Extensions (Intel XMX) but it also runs using DX12 SM6.4+ and DP4a intrinsic support on other GPU architectures. That makes it cross platform and hardware agnostic, and Intel says that the SDK will be open sourced.
 
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For developers looks like a better option than DLSS and FSR.

Works on all hardware unlike DLSS, but probably better quality than FSR - so easiest to just implement XeSS and be done with it.
 
This suggests is a driver-level implementation? (ie RSR)

not. implementation wise it will be similar to nvidia DLSS 2.

For developers looks like a better option than DLSS and FSR.

Works on all hardware unlike DLSS, but probably better quality than FSR - so easiest to just implement XeSS and be done with it.

the article itself mention that the best version of XeSS will take advantage of intel XMX instruction that is exclusive to intel hardware. in other words it will run on intel version of tensor core inside those Arc GPU. non intel GPU will fall back to DX12 DP4a instruction. yes XeSS will be cross platform but the best version with the best performance uplift will always run on intel hardware only. and for this reason alone it will not going to deter both nvidia and AMD to push their solution to be used in games.