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What is FP8 (and low-precision training/inference), and what are the tradeoffs?

Beyond FP16/BF16, FP8 is the next rung on the precision ladder, and the latest tensor cores compute on it natively. The signal is knowing the two formats, what FP8 actually buys, and why dynamic range forces careful scaling.

Updated Aug 2026 · Grounded in real Applied AI Engineer interview loops and written to a senior-engineer editorial bar.

Beyond FP16/BF16, FP8 is the next rung on the precision ladder, and the latest tensor cores compute on it natively. The signal is knowing the two formats, what FP8 actually buys, and why dynamic range forces careful scaling.

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