@Scale
By transmitting explicit scale indices to eliminate cross-platform arithmetic errors, Microsoft enabled real-time neural video compression on consumer NPUs that outperforms H.265 at a fraction of the bandwidth.
AI-assisted summary of ML Video Codecs: From Research Breakthroughs to Product-Scale Impact | Nabakumar Khongbantabam — original source. Check the original for full context.
Source published:
Key ideas
- Microsoft is productizing a Machine Learning Video Codec (MLVC) directly inside Microsoft Teams to replace traditional silicon-bound video codecs. (0:05)
- By executing on consumer laptop NPUs rather than waiting for dedicated fixed-function hardware, MLVC slashes the conventional 8-to-12-year standard-to-hardware adoption cycle to software update speeds. (3:07)
- In production testing, MLVC achieves comparable or superior perceptual visual quality with up to a 60% to 65% bitrate reduction compared to H.265. (12:19)
- To prevent decoding crashes across heterogeneous NPU hardware architectures, Microsoft engineered around floating-point bit-exactness by transmitting scale indices directly over the network. (9:17)
- The entire MLVC stack—including model checkpoints, the VCD2 benchmark dataset, and a C++ integration library—has been open-sourced ahead of a planned public preview in early 2027. (16:11)
Detailed notes
## Background This presentation was published on YouTube by the @Scale channel on October 30, 2026. Featuring Nabakumar Khongbantabam from Microsoft, the session details the technical journey of translating research-grade machine learning video codecs into a production-scale deployment inside Microsoft Teams.
## TL;DR Conventional video codec standards require an 8- to 12-year cycle from specification to hardware ubiquity, prompting Microsoft to develop a software-updatable ML Video Codec (MLVC) running directly on consumer Neural Processing Units (NPUs). Bridging research models like DCVC-RT to production required solving severe cross-platform bit-exactness failures and temporal drift across heterogeneous silicon from Apple, Intel, and Qualcomm. By transmitting explicit scale indices and pairing 540p neural encoding with client-side super-resolution, the team achieved a 60% to 65% bitrate reduction over H.265 at sub-16 millisecond frame latencies. Microsoft is validating the codec in internal Teams test rings ahead of a 2027 Copilot+ PC rollout, while releasing the models, VCD2 benchmark dataset, and C++ runtime library to the open-source community.
## Atmosphere & style The presentation carries the polished, authoritative rhythm of a pragmatic engineering post-mortem mixed with a high-stakes product roadmap reveal. Khongbantabam speaks with calm, measured technical confidence, focusing candidly on real-world engineering compromises—such as accepting bitrate overhead to overcome floating-point calculation mismatches across vendor silicon—rather than abstract research ideals. Side-by-side artifact comparisons and concrete performance metrics give the talk an engaging, problem-solving momentum that illustrates what it genuinely takes to commercialize deep learning breakthroughs.
## Bulletin - [00:05](https://www.youtube.com/watch?v=oD5z32RR4mk&t=5s) Microsoft is productizing a Machine Learning Video Codec (MLVC) directly inside Microsoft Teams to replace traditional silicon-bound video codecs. - [03:07](https://www.youtube.com/watch?v=oD5z32RR4mk&t=187s) By executing on consumer laptop NPUs rather than waiting for dedicated fixed-function hardware, MLVC slashes the conventional 8-to-12-year standard-to-hardware adoption cycle to software update speeds. - [12:19](https://www.youtube.com/watch?v=oD5z32RR4mk&t=739s) In production testing, MLVC achieves comparable or superior perceptual visual quality with up to a 60% to 65% bitrate reduction compared to H.265. - [09:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=557s) To prevent decoding crashes across heterogeneous NPU hardware architectures, Microsoft engineered around floating-point bit-exactness by transmitting scale indices directly over the network. - [16:11](https://www.youtube.com/watch?v=oD5z32RR4mk&t=971s) The entire MLVC stack—including model checkpoints, the VCD2 benchmark dataset, and a C++ integration library—has been open-sourced ahead of a planned public preview in early 2027.
## Key takeaways - [00:05](https://www.youtube.com/watch?v=oD5z32RR4mk&t=5s) Conventional video codec standards (such as H.264, H.265, and H.266) take 8 to 12 years from specification to widespread commercial adoption due to standardization, silicon manufacturing, and hardware refresh cycles. - [03:07](https://www.youtube.com/watch?v=oD5z32RR4mk&t=187s) Neural video codecs running on client NPUs decouple video compression advances from fixed-function silicon hardware cycles, enabling rapid deployment via standard application updates. - [03:07](https://www.youtube.com/watch?v=oD5z32RR4mk&t=187s) MLVC delivers operational backward compatibility across diverse existing consumer hardware, running on Apple Silicon dating back to M1 as well as newer Copilot+ PCs. - [06:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=377s) Deploying academic models like DCVC-RT to consumer devices surfaced two major bottlenecks: severe real-time compute limits on laptop NPUs and the near-impossibility of achieving cross-vendor bit-exactness. - [06:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=377s) Divergent floating-point arithmetic across different vendor NPUs breaks entropy model synchronization, causing immediate decode failures when streaming across heterogeneous platforms like Apple M3 and Intel Lunar Lake. - [09:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=557s) Transmitting scale indices explicitly across the network resolves cross-platform bit-exactness failures at the cost of minor bitrate overhead. - [09:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=557s) Temporal decoder drift caused by compounding rounding errors in recurrent layers is mitigated using Long-Term Reference frames, periodic intra-frame resets, and standardized operators like ReLU. - [12:19](https://www.youtube.com/watch?v=oD5z32RR4mk&t=739s) Direct engineering partnerships with silicon vendors enabled real-time execution achieving at least 30 fps with sub-16 ms end-to-end frame latency across Intel, Qualcomm, and Mac platforms. - [12:19](https://www.youtube.com/watch?v=oD5z32RR4mk&t=739s) The Teams production pipeline pairs 540p MLVC encoding with receiver-side super-resolution upscaling to 720p, achieving roughly 60% bitrate savings compared to native 720p H.265 streams. - [14:22](https://www.youtube.com/watch?v=oD5z32RR4mk&t=862s) Microsoft built the VCD2 dataset to evaluate conferencing codecs, expanding capture volume fivefold over VCD1 using lossless raw footage across diverse sensors and lighting conditions. - [14:22](https://www.youtube.com/watch?v=oD5z32RR4mk&t=862s) MLVC is undergoing internal employee ring testing in Microsoft Teams, with targeted rollout for public preview in early 2027 across Copilot+ PCs and MacBooks. - [16:11](https://www.youtube.com/watch?v=oD5z32RR4mk&t=971s) An open-source release provides the core model checkpoints, training scripts, the VCD2 benchmark suite, and an optimized C++ wrapper library to facilitate integration into third-party media engines.
## Detailed walkthrough ### [00:05](https://www.youtube.com/watch?v=oD5z32RR4mk&t=5s) Introduction to Video Codecs and the Slow Pace of Conventional Standards
Nabakumar Khongbantabam, a product manager at Microsoft, introduces the joint initiative between Microsoft Research and engineering teams to commercialize and ship a machine learning video codec (MLVC) directly inside Microsoft Teams. Video codecs underpin virtually every modern digital video experience, from web streaming to everyday video conference calls, by dramatically shrinking the massive volume of raw data emitted by cameras so it can be transmitted and stored over standard network infrastructure. During playback, the decoder reconstructs the video stream as close to the original source fidelity as possible. Because video compression is inherently lossy, different codecs achieve varying levels of compression efficiency—trading off bitrate reductions against computational complexity. Demonstrating this disparity, Nabakumar shares a side-by-side comparison between MLVC and the ubiquitous legacy standard H.264, both streaming at a constrained 130 kilobits per second (kbps), highlighting that MLVC reproduces a dramatically sharper, higher-quality image where H.264 visibly breaks down.
The broader problem with traditional video codecs is the glacial pace of standard development and commercial adoption. Historical video coding advances occur roughly once every decade: H.264 emerged over twenty years ago and remains widespread; H.265 (HEVC) arrived roughly ten years later promising half the bitrate; and H.266 (VVC) was finalized recently and is only beginning the initial steps toward productization. Developing a conventional codec requires a multi-stage process spanning standard body debates, dedicated fixed-function silicon architecture design by hardware vendors, device production, and finally the multi-year cycle of consumer adoption. Nabakumar emphasizes this protracted timeline:
> “So overall it can easily take 8 to 12 years from spec to scale.”
- **H.264 standard**: Developed ~20 years ago and remains in active commercial use. - **H.265 (HEVC)**: Arrived ~10 years after H.264, delivering roughly a 50% bitrate reduction for equivalent quality. - **H.266 (VVC)**: Recently standardized and only now entering early productization stages. - **Spec-to-scale cycle**: 8 to 12 years required across international standardization, silicon fabrication, OEM hardware distribution, and end-user hardware refresh cycles.
---
[03:07](https://www.youtube.com/watch?v=oD5z32RR4mk&t=187s) Neural Video Codecs on NPUs: Overcoming Silicon Lag
To circumvent the decade-long silicon lag, Microsoft's strategy pivots around Neural Processing Units (NPUs), which are now integrated into modern laptops and mobile devices. Rather than relying on expensive server-grade GPUs or waiting for fixed-function silicon encoders, ML video codecs execute directly on consumer NPUs using end-to-end trained deep neural networks designed specifically for reconstructive fidelity. This flexibility allows Microsoft to tailor neural compression models to specific communication workloads and offers three fundamental operational advantages over conventional silicon-bound codecs.
First, neural codecs achieve substantially superior compression efficiency, delivering higher perceived visual quality at drastically reduced bitrates. In production testing, MLVC achieves equivalent or superior fidelity using 65% less bitrate than H.265. Second, software-driven neural models allow instant, frictionless deployment; an updated model can be delivered overnight within a standard Microsoft Teams application update and run immediately on existing client devices, as demonstrated by MLVC deploying straight to new Copilot+ PCs. Third, NPU execution provides broader backward compatibility across varied hardware tiers without requiring new silicon, running successfully on platforms dating back to Apple's M1 chips. Highlighting this software-driven delivery velocity, Nabakumar notes:
> “The second big advantage is that we can deploy it much faster when we have an update of the model.”
```mermaid flowchart TD accTitle: Conventional Silicon vs ML NPU Codec Deployment accDescr: Diagram contrasting the slow 8-12 year cycle of conventional video codecs with the rapid software update model of NPU-based ML codecs.
subgraph Conventional ["Conventional Codecs (8-12 Years)"] A["Standardization Bodies"] --> B["Silicon Architecture Design"] B --> C["Hardware OEM Device Release"] C --> D["Consumer Fleet Refresh"] end
subgraph Neural ["ML Video Codec on NPUs (Weeks/Months)"] E["End-to-End Deep Model Training"] --> F["Client App Software Update"] F --> G["Instant Deployment on Consumer NPUs"] end ```
- **Compression efficiency**: MLVC delivers comparable or better visual reconstruction using 65% less bitrate than H.265. - **Deployment speed**: Instant software delivery through application patch cycles without waiting for hardware refreshes (active on Copilot+ PCs). - **Backward reach**: Operational across diverse existing hardware, including Apple Silicon (M1 and newer).
---
[06:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=377s) Research to Product: The Dual Bottlenecks of Bit-Exactness and Compute
Neural video codecs are deeply rooted in academic literature, with Microsoft Research pioneering the Deep Context Video Compression (DCVC) family. The team developed multiple iterative generations, culminating in DCVC-RT (Real-Time DCVC), which introduced critical real-time features including adaptive rate control, NPU runtime suitability, and substantial compute efficiency gains over prior academic benchmarks. However, transitioning DCVC-RT from a controlled laboratory setting to a consumer application like Microsoft Teams uncovered two major technical obstacles: computational complexity and bit-exactness.
While research models run unconstrained on high-end desktop GPUs, real-world teleconferencing demands real-time frame processing on standard consumer laptop NPUs under tight thermal and power envelopes. The more insidious blocker, however, was the requirement for bit-exactness. In neural codecs, the learned entropy model between the encoder and decoder must synchronize mathematically to mirror probability distributions and decode symbols accurately. In a consumer ecosystem as fragmented as Microsoft Teams—spanning multiple hardware manufacturers, NPU instruction sets, and divergent floating-point execution implementations—achieving bit-exact numerical parity proved virtually impossible. To illustrate the catastrophic nature of this breakdown, Nabakumar presents a cross-platform test where a frame encoded with DCVC-RT on an Apple M3 processor was sent to an Intel Lunar Lake laptop:
> “When we attempted to decode it on the lunar lake device it completely failed and that is because of the issue that I described earlier.”
- **DCVC-RT (Real-Time DCVC)**: State-of-the-art neural codec developed by Microsoft Research featuring dynamic rate control and runtime optimizations. - **Compute disparity**: Transitioning research workflows off power-hungry discrete GPUs onto lightweight consumer laptop NPUs. - **Cross-platform failure**: Floating-point calculation differences across vendor architectures (e.g., Apple M3 encoding decoded by Intel Lunar Lake) break entropy model probability sync, leading to instant decoding crashes.
---
[09:17](https://www.youtube.com/watch?v=oD5z32RR4mk&t=557s) Engineering Around Bit-Exactness: Scale Indices and Drift Mitigation
To solve cross-platform decoding crashes, Microsoft abandoned the academic ideal of universal bit-exactness in favor of a pragmatic engineering workaround: transmitting the scale indices directly over the network to the decoder rather than forcing the decoder's local entropy model to infer them. Transmitting these explicit indices introduces a minor bitrate overhead penalty, but it successfully sidesteps the requirement for identical floating-point arithmetic across heterogeneous client hardware.
```mermaid flowchart LR accTitle: MLVC Heterogeneous Stream and Drift Recovery accDescr: Flow diagram showing scale index transmission and drift mitigation techniques across diverse hardware.
subgraph Sender ["Encoder (e.g., Apple M3)"] ENC["Neural Encoder"] --> OUT["Transmit Compressed Frame"] IDX["Extract Scale Indices"] --> SIG["Explicit Index Transmission"] end
subgraph Receiver ["Decoder (e.g., Intel Lunar Lake)"] SIG --> DEC["NPU Neural Decoder"] OUT --> DEC REC["Mitigation: Long-Term References & I-Frame Resets"] -.-> DEC end ```
Eliminating hard decode crashes revealed a secondary challenge: temporal decoder drift. Because the recurrent neural network (RNN) layers in the model feed past state representations into future predictions, minute numerical rounding errors across differing NPUs gradually compound frame after frame, causing image quality to degrade into noise over time. To stabilize long-running calls, the team introduced three architectural mitigations: 1. **Long-Term Reference (LTR) recovery**: Periodically binding active decoding passes back to known stable reference frames. 2. **Proactive intra-frame (I-frame) resets**: Refreshing the temporal state chain at regular intervals, mirroring conventional video codecs. 3. **Operator sanitization**: Replacing arbitrary non-linear activation functions—which hardware vendors implement inconsistently—with numerically robust, standardized operators such as ReLU and Leaky ReLU.
Demonstrating the efficacy of this production-hardened pipeline, Nabakumar shares a visual test between MLVC and H.265, both operating at 200 kbps. Where H.265 exhibits heavy compression artifacts and noise around the speaker's face and background, MLVC maintains razor-sharp facial details and clean backgrounds. Nabakumar underscores that the added overhead needed for platform stability does not compromise the codec's value proposition:
> “So overall despite all the enhancements and increase in the bit rate because of the additional overhead we are sending it is still significantly better than H.265.”
With interoperability stabilized, the engineering team turned its focus toward optimizing real-time execution speeds directly on consumer NPUs through deep vendor-specific hardware collaborations.
[12:19](https://www.youtube.com/watch?v=oD5z32RR4mk&t=739s) Real-Time Hardware Optimization and Rate-Distortion Performance
To bring machine-learning-based video coding out of research environments and into production, Microsoft partnered directly with silicon vendors to optimize the models specifically for each hardware target. These joint efforts made real-time execution possible across Intel, Qualcomm, and Mac platforms. For production interactive video, the engineering bar was clear: the system required at least 30 frames per second with an end-to-end frame latency under 16 milliseconds. Nabakumar Khongbantabam confirms that internal engineering hit these strict operational budgets, showing internal ring call testing where employees dogfood the codec inside Microsoft Teams prior to any public preview.
When comparing MLVC against standard H.265 (HEVC), the production setup in Microsoft Teams departs slightly from the baseline configuration published in the original research paper. While the academic paper compared both codecs natively at 540p, the Teams implementation targets 720p video delivery. Under this pipeline, MLVC encodes at 540p and reconstructs to 720p on the receiving end using an upscaler such as a neural super-resolution model or Lanczos filtering, whereas H.265 operates directly at native 720p. The resulting rate-distortion curves demonstrate substantial efficiency gains, with the MLVC curve tracking well above H.265 across comparable perceptual quality metrics. Demonstrating the magnitude of the improvement, Nabakumar Khongbantabam highlights: “This roughly corresponds to about 60% reduction in bit rate by MLVC when we maintain the same perceptual video quality between the two codecs.”
```mermaid flowchart LR accTitle: MLVC versus H265 Teams Pipeline accDescr: Diagram contrasting the Teams MLVC 540p super-resolution pipeline with native H265 720p encoding.
subgraph MLVC_Pipeline["MLVC Teams Pipeline"] A["Capture 540p"] --> B["MLVC Encode & Transmit"] B --> C["Super Resolution / Lanczos"] C --> D["720p Perceptual Output"] end
subgraph H265_Pipeline["Conventional Pipeline"] E["Capture 720p"] --> F["H.265 Native Encode"] F --> G["720p Output"] end ```
- Hardware execution targets real-time video delivery at $\ge$30 fps with a frame latency of $\le$16 ms on Intel, Qualcomm, and Apple Mac hardware. - The Teams production pipeline pairs 540p MLVC encoding with receiver-side super-resolution or high-quality upscalers to outperform native 720p H.265 streams. - The pre-trained model weights reflecting this configuration are published in the open-source repository for public evaluation.
---
[14:22](https://www.youtube.com/watch?v=oD5z32RR4mk&t=862s) The VCD2 Evaluation Dataset and Teams Rollout Roadmap
Rigorous verification of the codec required realistic, modern benchmarking data. Microsoft previously released VCD (Video Conferencing Dataset), which helped evaluate earlier computer vision algorithms, but production-grade testing demanded an updated suite: VCD2. This upgraded second generation expands the capture footprint to five times the size of VCD1, incorporating a broader spectrum of camera sensors, lighting scenarios, and subject variety. Critically, VCD2 stores every raw video capture with lossless compression, ensuring that no prior encoder artifacts or compression noise contaminate benchmark evaluations.
Deploying MLVC into Microsoft Teams follows a staged ring deployment model. Having worked around core machine learning and systems hurdles, Microsoft advanced the codec to internal test rings to polish real-world edge cases. The roadmap calls for introducing MLVC to public preview early next year in 2027, followed by general availability across Copilot+ PCs powered by Intel and Qualcomm silicon, later expanding to AMD platforms as well as Apple MacBooks. Outlining the platform's long-term trajectory, Nabakumar Khongbantabam states: “So overall our aim is to migrate the video codec used in teams to our ML video codec over time.”
- **VCD2 Benchmark Dataset**: Contains 5× more footage than VCD1, broader camera model diversity, and completely lossless raw source captures. - **Deployment Stage**: Operating inside internal employee testing rings (step two) before opening to broader audiences. - **Rollout Schedule**: Targeted public preview rollout in early 2027 across Copilot+ PCs (Intel, Qualcomm, and eventually AMD) and MacBooks, with wider platform support slated for late 2027.
---
[16:11](https://www.youtube.com/watch?v=oD5z32RR4mk&t=971s) Open-Source Ecosystem and C++ Codec Library
To spur industry adoption and community experimentation, Microsoft open-sourced the complete MLVC technical stack rather than reserving it solely for Teams infrastructure. The open-source deliverables encompass the core codec architectures alongside fully trained model checkpoints that developers can deploy out of the box. The repository includes end-to-end training pipelines, step-by-step guidance on curating training data, and the full VCD2 evaluation benchmark suite.
To bridge the gap between Python-heavy research environments and real-world software engineering, the release provides an optimized C++ wrapper library. This runtime layer abstracts the internal deep learning inference engine, providing standard coding interfaces that allow engineers to plug the machine learning codec into native media pipelines and external video applications without rewriting model management code. Summarizing the intent behind the release, Nabakumar Khongbantabam explains: “We have also released the C++ codec library that wraps the model and makes it really easy for any developer to try it out and integrate it in an application.” Extensive technical documentation and previously published academic papers accompany the release to give engineers insight into the underlying mathematical formulations and systems-level tradeoffs.
## Notable quotes > [00:05](https://www.youtube.com/watch?v=oD5z32RR4mk&t=5s) So overall it can easily take 8 to 12 years from spec to scale. — Nabakumar Khongbantabam
## Mentioned Nabakumar Khongbantabam, Microsoft, Microsoft Research, Microsoft Teams, MLVC, H.264, H.265 (HEVC), H.266 (VVC), Copilot+ PC, Apple, Apple M1, Apple M3, Intel Lunar Lake, Intel, Qualcomm, AMD, DCVC, DCVC-RT, VCD, VCD2
## Video description Nabakumar Khongbantabam from Microsoft
[Source](https://www.youtube.com/watch?v=oD5z32RR4mk)