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However, the new FSR4 will be available only on AMD and only on 90 series and it does look very promising.
Wait for new AMD GPUs and FSR4 reviews. If FSR4 delivers then AMD will be a valid option but if not then NVIDIA might be a better value. DLSS4 upscaling became magic and literally better than native.
FSR (like DLSS) is just an algorithm to transform one image to another. Some hardware might be a bit optimized to run this algorithm faster, but results should be the same.
FSR (like DLSS) is still being developed and improved. You can expect next versions producing better results.
The only reason why DLSS only works on Nvidia cards is the legal team of Nvidia. They made it illegal to use this technology anywhere else and they are very agressive ensuring it.
DLSS requires AI cores. It needs that hardware acceleration. DLSS4 even more so to a point where DLSS4 with more heavy transformer model gives noticeably worse performance than old CNN model. More noticeable on older and lower tier GPUs with less tensor cores.
I wouldn’t be surprised if DLSS4 lowered performance on GPUs without AI hardware.
The upcoming FSR4 may use a similar approach as DLSS, but using WMMA cores instead of tensor ones. Simply leaving a part of the GPU to do absolutely nothing is a waste.
What are your current specs, what components are you planning on upgrading (or whole new build?), and what is your budget range?
What PSU and disk(s) do you have?
You'd probably be close to be able to build a pretty decent AM5 system along with either the 5070 Ti or 9070XT (depending on whatever those benchmarks actually look like and how FSR4 actually looks).
I'd still lean toward Nvidia because while the very little we were able to see of FSR4 being shown with Ratchet & Clank looked much better than FSR 2 and 3; it still looked well behind DLSS4. The 9070 series isn't due out until March and the 5070/5070Ti are supposed to be launching in late February IIRC so if you are waiting until then to upgrade then I'd suggest to wait until DF can do a proper side-by-side of DLSS4 vs FSR4 as I'm sure they will likely try to do so.
I can never remember what PSU I have. I upgraded it only just over a year ago though to something good. I have an M.2 NVME Samsung ssd for my disk