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What Is Federated Learning?

Federated learning is a way to develop and validate AI models from diverse data sources while mitigating the risk of compromising data security or privacy, as the data never leaves individual sites.
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AI healthcare

Editor’s note: On April 16, 2024, we updated our original post on federated learning, which was first published October 13, 2019. 

The key to becoming a medical specialist, in any discipline, is experience.

Knowing how to interpret symptoms, which move to make next in critical situations, and which treatment to provide — it all comes down to the training you’ve had and the opportunities you’ve had to apply it.

For AI algorithms, experience comes in the form of large, varied, high-quality datasets. But such datasets have traditionally proved hard to come by, especially in the area of healthcare.

Federated learning is a way to develop and validate accurate, generalizable AI models from diverse data sources while mitigating the risk of compromising data security or privacy. It enables AI models to be built with a consortium of data providers without the data ever leaving individual sites.

Medical institutions have had to rely on their own data sources, which can be biased by, for example, patient demographics, the instruments used or clinical specializations. Or they’ve needed to pool data from other institutions to gather all of the information they need, which requires managing regulatory issues.

Federated learning makes it possible for AI algorithms to gain experience from a vast range of data located at different sites.

The approach enables several organizations to collaborate on the development of models, but without needing to directly share sensitive clinical data with each other.

Over the course of several training iterations the shared models get exposed to a significantly wider range of data than what any single organization possesses in-house.

Federated learning is gaining traction beyond healthcare, moving into financial services, cybersecurity, transportation, high performance computing, energy, drug discovery and other fields.

Frameworks such as NVIDIA FLARE (NVFlare) have enabled enterprises to collaborate by contributing data through federated learning for model improvements.

NVFlare, an open-source federated learning framework that’s widely adopted across various applications, offers a diverse range of examples of machine learning and deep learning algorithms. It includes robust security features, advanced privacy protection techniques and a flexible system architecture — building trust among users.

How Federated Learning Works 

The main concept of federated learning is to train models locally without sharing data, only the model parameters.

The aggregator starts with an initial global model and broadcasts the model parameters to all clients. The client node receives the global model parameters and starts training the received model on local data. Then, the newly trained local model is sent back to the aggregator node. Only model parameters, no private data, are shared with the aggregator.

The aggregator node will perform aggregation, such as weighted average, to produce a new global model. That new global model will be broadcast again by repeating the first step until convergence, or until it’s reached the max number of rounds.

AI algorithms deployed in medical scenarios ultimately need to reach clinical-grade accuracy. Largely speaking, this means that they meet, or exceed, the gold standard for the application to which they’re applied.

To be considered an expert in a particular medical field, you generally need to have clocked 15 years on the job. Such an expert has probably read around 15,000 cases in a year, which adds up to around 225,000 over their career.

When you consider rare diseases, which affect around one in 2,000 people, even an expert with three decades’ experience will have only seen roughly 100 cases of a particular condition.

To train models that meet the same grade as medical experts, the AI algorithms need to be fed a large number of cases. And these examples need to sufficiently represent the clinical environment in which they’ll be used.

But currently the largest open dataset contains 100,000 cases.

And it’s not only the amount of data that counts. It also needs to be very diverse and incorporate samples from patients of different genders, ages, demographics and environmental exposures.

Individual healthcare institutes may have archives containing hundreds of thousands of records and images, but these data sources are typically kept siloed. This is largely because health data is private and cannot be used without the necessary patient consent and ethical approval.

Federated learning decentralizes deep learning by removing the need to pool data into a single location. Instead, the model is trained in multiple iterations at different sites.

For example, say three hospitals decide to team up and build a model to help automatically analyze brain tumor images.

If they chose to work with a client-server federated approach, a centralized server would maintain the global deep neural network and each participating hospital would be given a copy to train on their own dataset.

Once the model had been trained locally for a couple of iterations, the participants would send their updated version of the model back to the centralized server and keep their dataset within their own secure infrastructure.

The central server would then aggregate the contributions from all of the participants. The updated parameters would then be shared with the participating institutes, so that they could continue local training.

A centralized-server approach to federated learning.

If one of the hospitals decided it wanted to leave the training team, this would not halt the training of the model, as it’s not reliant on any specific data. Similarly, a new hospital could choose to join the initiative at any time.

This is just one of many approaches to federated learning. The common thread through all approaches is that every participant gains global knowledge from local data — everybody wins.

Why Federated Learning?

Federated learning still requires careful implementation to ensure that patient data is kept secure. But it has the potential to tackle some of the challenges faced by approaches that require the pooling of sensitive clinical data.

For federated learning, clinical data doesn’t need to be taken outside an institution’s own security measures. Every participant keeps control of its own clinical data.

As this makes it harder to extract sensitive patient information, federated learning opens up the possibility for teams to build larger, more diverse datasets for training their AI algorithms.

Implementing a federated learning approach also encourages different hospitals, healthcare institutions and research centers to collaborate on building a model that could benefit them all.

How Federated Learning Can Transform Industries

Federated learning could revolutionize how AI models are trained, with the benefits also filtering out into the wider healthcare ecosystem.

Larger hospital networks would be able to work better together and benefit from access to secure, cross-institutional data. While smaller community and rural hospitals would enjoy access to expert-level AI algorithms.

It could bring AI to the point of care, enabling large volumes of diverse data from across different organizations to be included in model development, while complying with local governance of the clinical data.

Clinicians would have access to more robust AI algorithms, based on data that represents a wider demographic of patients for a particular clinical area or from rare cases that they would not have come across locally. They’d also be able to contribute back to the continued training of these algorithms whenever they disagreed with the outputs.

Healthcare startups could bring cutting-edge innovations to market faster, thanks to a secure approach to learning from more diverse algorithms.

Meanwhile, research institutions would be able to direct their work toward actual clinical needs, based on a wide variety of real-world data, rather than the limited supply of open datasets.

Large-scale federated learning projects are now starting, hoping to improve drug discovery and bring AI benefits to the point of care.

MELLODDY, a drug-discovery consortium based in the U.K., aims to demonstrate how federated learning techniques could give pharmaceutical partners the best of both worlds: the ability to leverage the world’s largest collaborative drug compound dataset for AI training without sacrificing data privacy.

King’s College London is hoping that its work with federated learning, as part of its London Medical Imaging and Artificial Intelligence Centre for Value-Based Healthcare project, could lead to breakthroughs in classifying stroke and neurological impairments, determining the underlying causes of cancers, and recommending the best treatment for patients.

In the context of financial services, federated learning can be applied to train a model using data from several banks to estimate individual transaction risk scores while keeping personal information locally at the banks.

Fraud detection is an important federated learning use case for banking and insurance. Institutions can harness data from user accounts and fraud cases to create better fraud-detection models without sacrificing user data privacy.

This can be challenging without federated learning, considering data privacy protection laws such as the EU’s GRPR, China’s PIPL and the recent EU AI Act, which prohibits cross-border data sharing. With federated learning, financial institutions can comply with these laws and regulations while using rich, private datasets for better, safer outcomes.

NVFlare can be used with XGBoost and Kaggle’s Credit Card Fraud Detection dataset for securing credit card transactions and with graph neural networks (GNNs) for financial transaction classification.

Federated learning is also applicable in use cases such as federated data analytics on edge medical devices, cross-board data training with autonomous vehicle models and drug discovery. Driven by data privacy regulations, the need to build better models with more private data, as well as the generative AI boom, the adoption of federal learning is accelerating.

Learn more about NVFlare. Explore more about federated learning on related NVIDIA technical blogs. And discover the science behind the approach, in this paper.

 

How Businesses Are Building Specialized AI They Can Trust

With NVIDIA Agent Toolkit — an open foundation comprising models, tools, skills and a secure runtime for AI agents — enterprises are building specialized AI tuned for domain-specific workflows.
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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 businesses build specialized AI systems and applications on NVIDIA platforms. Each post highlights practical ways to use an open stack to deliver real value in production — from transparent research copilots to scalable AI agents. 

Companies are asking how to build specialized AI that fits with the way their workflows actually run. 

The first wave of enterprise AI was about access. Companies experimented with new frontier and open models, ran pilots and explored how AI can help. 

Now, specialized agents — systems of models that can reason, use tools and take action even for the most complex workflows — put more useful AI within reach of the people who already know the work best.

Agents are already helping life sciences researchers accelerate medicine discovery, security teams investigate vulnerabilities with more context and operations teams seamlessly coordinate supply chains. 

To tap into these specialized agents, businesses are using a foundation they can adapt and own: one built on models they can customize, tools that connect to systems they already use and infrastructure that lets agents operate safely at scale.

NVIDIA Agent Toolkit — comprising models, tools, skills and a secure runtime — provides an open, modular foundation for building safer, faster, lower-cost digital AI coworkers that enterprises and developers can customize, specialize, control and trust.

The Building Blocks for Specialized AI Coworkers

Enterprises and developers building secure, specialized AI agents require:

  • Models, which provide the reasoning foundation. 
  • Tools and skills, which connect agents to the actions and domain expertise needed to get work done. 
  • Runtime support, which helps agents execute workflows. 

NVIDIA Agent Toolkit includes all three:

  • NVIDIA Nemotron open models give teams flexibility to customize, evaluate and deploy agents for their own needs. 
  • NVIDIA NemoClaw blueprints provide patterns for safer agent behavior, delivering accurate results at lower costs, with tools and skills connecting agents to concrete actions.
  • The NVIDIA OpenShell runtime helps agents operate safely inside the systems where work gets done. 

NVIDIA technologies accelerate all the pieces needed to turn a powerful frontier model into a fully functional digital coworker. The toolkit’s users can work with third-party agent harnesses — or agent orchestration frameworks — of their choice, including Hermes Agents and OpenClaw.

This unlocks enterprise AI momentum with control. And that matters because the most valuable agents across industries will be specialized. 

Agents Take Shape Across Industries

The specialized AI foundation is already at work.

In life sciences, agents can help researchers call domain models for protein design, virtual screening, genomics analysis and biomarker discovery. The new NVIDIA BioNeMo Toolkit enables work that previously took months to be completed in days. 

In healthcare, agents support clinical documentation, clinical decision support and care coordination. Plus, physical agents in robotics systems trained in digital twins of hospitals can scale surgical assistance and hospital automation to meet care demands.

In software, cybersecurity, industrial operations and customer workflows, agents can connect to the tools and data teams already use, helping people move faster through complex workflows.

For example, Cadence and Synopsys are building autonomous agents for chip design and engineering workflows. CrowdStrike is running specialized security agents that triage alerts with 98.5% accuracy. Palantir, SAP, ServiceNow, Siemens and Dassault Systèmes are embedding agent capabilities into the enterprise platforms where critical decisions get made. 

It all points to the same larger shift: Agents become more useful when they can combine models, tools, skills, runtime and infrastructure in ways companies can adapt to their own workflows. NVIDIA Agent Toolkit provides an open, modular foundation that enables this combination.

Learn more about NVIDIA Agent Toolkit and NVIDIA BioNeMo Agent Toolkit.

Eco Wave Power Turns Waves Into Watts With NVIDIA AI Infrastructure and Digital Twins

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The next era of AI will not be defined by compute alone. Its growth will be determined by energy.

 As accelerated computing scales across AI factories, agentic AI, industrial AI, edge computing and physical AI — including robotics and autonomous systems — global electricity demand is rising at unprecedented speed. 

In many regions, expanding grid infrastructure to meet that need requires years of permitting, transmission upgrades, land acquisition and capital investment.

This challenge is reshaping how the world thinks about energy infrastructure for AI.

Eco Wave Power, a member of the NVIDIA Inception startup program’s Sustainable Futures initiative, is developing technology — powered by NVIDIA AI infrastructure and digital twins — that converts energy from ocean waves into clean electricity using existing marine infrastructure. By using already-built coastal structures, wave energy generation can be deployed closer to areas with growing power demand — including ports, industrial zones and future AI infrastructure hubs.

“Wave energy is one of the largest renewable energy sources that exists,” said Inna Braverman, cofounder and CEO of Eco Wave Power. “Everybody wants it, but nobody can do it, so I looked at the current problems with harnessing wave power and I asked: How do we simplify it?

Turning the Sea Into a Power Source 

Harnessing Earth’s natural cycles for power generation isn’t a new concept. Wind and solar energy have been well established industries for decades. 

Waves are on the way to completing this trifecta of power-producing elements. 

In the U.S. alone, wave energy could produce over 60% of annual energy consumption, according to the Energy Information Administration. 

It all starts with floaters — noninvasive floating infrastructure attached to breakwaters or sea walls to capture the power generated by waves breaking against the shoreline. 

The density of seawater is roughly 800x the density of air, allowing larger amounts of energy to be generated using much smaller devices than wind turbines. 

The next step is managing and distributing that power. While previous companies faced a bottleneck at this stage — due to having their computer hardware in the floater, leading to potential damages during rough currents — Eco Wave Power puts its computers, sensors, hydraulic conversion and electric parts on land at centers, keeping expensive hardware dry and safe from storms. 

“Wave energy is the least intermittent source of renewable energy,” Braverman said. “Solar energy — for example — is great, but you have night, winter, cloud coverage and pollution that all impact production. With wave energy, you can generate around the clock.” 

AI Wave Energy Layer Using NVIDIA Omniverse Libraries and Accelerated Compute

As AI infrastructure expands, energy systems themselves are becoming increasingly intelligent.

Digital twins of wave patterns and floating infrastructure — built with NVIDIA Omniverse libraries — can simulate wave conditions, structural behavior, deployment configurations and operational scenarios before physical installation begins. These virtual environments can help optimize engineering decisions, reduce deployment risk and accelerate infrastructure planning.

At the operational layer, NVIDIA accelerated computing and AI technologies enable real-time optimization of wave energy systems through predictive analytics, anomaly detection, environmental forecasting and predictive maintenance. AI models can continuously analyze ocean conditions, equipment performance and energy generation patterns to improve efficiency and operational resilience.

AI can also orchestrate energy-aware computing infrastructure by aligning energy-intensive workloads with periods of stronger renewable generation and dynamically optimizing power utilization across distributed systems. 

Ocean Powered Data Centers on the Horizon 

Eco Wave Power operates projects in Jaffa Port, Israel, created in collaboration with EDF Power Solutions and the Israeli Energy Ministry, and in the Port of Los Angeles, developed in collaboration with AltaSea and Shell. Eco Wave Power is also developing new projects in Portugal at the Port of Leixões, Suao Port in Taiwan, and Mumbai, India, with Bharat Petroleum. 

Wave power has already demonstrated its ability to handle consumer energy needs — and is now showing potential to support data centers. 

“We have a possibility to link AI factories directly to wave energy, because a lot of data centers are moving toward the coast,” Braverman said. “They need cooling and water, so they’re now located in ports.” 

Pilots are already underway at the port of Los Angeles to showcase how wave energy can be the sole power source for a data center without tapping into the existing grid energy.

AI software serves as the control layer for this data center pilot, planning compute tasks based on the available power supply. For example, the software can monitor and predict when waves will be stronger throughout the week based on weather patterns — and accordingly allocate more intensive compute tasks for these periods. 

“We exist, we work, we’re grid connected and we have so much of this resource,” Braverman  said. “The energy is needed now, so I think we’re in the right place at the right time and we’re innovative, but we’re not futuristic, and that’s what sets us apart.” 

Explore how NVIDIA is driving the future of energy.

At Cannes Lions, NVIDIA Partners Reshape Advertising and Marketing With AI

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The digital era gave the advertising and marketing industry speed; the AI era is giving it autonomous operations. 

For companies building next-generation technologies for advertising and marketing, the question is no longer whether to adopt AI but whether their infrastructure can support it at the speed and scale the industry demands. 

At Cannes Lions, running June 22-26 in France, industry leaders including Alembic, Amazon Web Services (AWS), Criteo, Higgsfield, KERV.ai and Taboola are showcasing how NVIDIA technologies help unlock greater creativity and enable faster, autonomous operations at enterprise scale.

Decision Intelligence at Enterprise Scale

Causal AI platform Alembic helps solve one of enterprises’ biggest challenges: proving what marketing initiatives actually drive growth, not just reporting on what happened. Modeling true causation simultaneously across every channel, market and audience requires AI infrastructure that can process enormous, fast-changing datasets without reducing them to correlation-based assumptions.

NVIDIA DGX Vera Rubin NVL72 systems enable Alembic to scale its Causal AI models to analyze more variables, run larger simulations and quantify the true drivers of growth across marketing investments. Alembic will be the first Causal AI company to use NVIDIA DGX Vera Rubin SuperPODs for enterprise-scale causal modeling, giving executives a single source of unbiased truth on what drove business outcomes and where capital is being wasted, so they can act with confidence on future decisions.

Alembic’s inference runs on private supercomputing infrastructure inside Equinix data centers where the enterprise data already lives, keeping AI workloads local. World Wide Technology extends this to secure and regulated environments. Together, the companies offer a complete enterprise AI stack purpose-built for executives and data leaders accountable for capital decisions. 

Smarter Bidding at Auction Speed

For advertisers, serving ads and relevant recommendations across billions of daily transactions requires AI that’s accurate, fast and affordable enough to run at scale.

Amazon Web Services (AWS) is bringing cloud infrastructure, foundation models and NVIDIA GPU-accelerated computing together into a cohesive stack for the adtech industry that can scale for the era of AI agents. AWS is giving advertisers and demand-side platforms, supply-side platforms and independent software vendors a production-ready reference implementation to run AI-powered bidding directly inside auctions — powered by NVIDIA Triton Inference Server, which delivers deep learning inference fast enough to fit within real-time auction windows. 

That means adtech companies can move from rules-based decisioning to AI-powered models for bid price optimization, audience activation and deal scoring directly within the live auction pipeline.

Advertising company Criteo helps retailers show the right product to the right shopper at the right moment, across one of the largest recommendation networks in digital advertising. Keeping those recommendations relevant means continuously retraining its AI on billions of shopper timelines, a process where speed directly translates to quality. 

Collaborating with NVIDIA, Criteo achieved a roughly 2x speedup in model training on NVIDIA Blackwell GPUs, driven by the NVIDIA cuEmbed open library. That efficiency already frees roughly 17,000 GPU hours a year, and the companies are now scaling the work further.

Infographic that depicts Criteo trains its AI on billions of shopper timelines, achieving a 2x speedup in model training on NVIDIA Blackwell GPUs, which frees roughly 17,000 GPU hours a year.

Taboola is applying the same infrastructure logic to conversational AI, using NVIDIA GPUs to power DeeperDive, its AI answer engine, and extending that infrastructure to AI platforms and chatbots so they can generate revenue from advertising.

Agentic AI Across the Marketing Workflow

In marketing and other industries, AI agents are increasingly acting as digital coworkers, taking on long-running tasks across planning, execution and optimization. But these agents are only deployable for enterprises when they come with proper controls, including safety guardrails, auditability and role-based permissioning. 

The NVIDIA Agent Toolkit, which includes NVIDIA NemoClaw blueprints and the NVIDIA OpenShell secure runtime, provides these controls.

For example, Higgsfield AI, an AI video and image generator production platform, offers Higgsfield Supercomputer agents that manage the full marketing automation lifecycle: from campaign ideation, planning, creative production to posting and autonomous campaign optimization — in a single interface. It orchestrates leading large language models alongside 35+ image, audio and video models, including Higgsfield’s proprietary Soul and Soul 2.0 models built on NVIDIA Blackwell architecture. 

As part of the collaboration, NVIDIA Agent Toolkit software, including NVIDIA Nemotron open models, powers specialized subagents within the Higgsfield Supercomputer, running continuously inside every campaign. NemoClaw and OpenShell are being integrated to provide the enterprise trust layer.  

The result: the full marketing lifecycle, from ideation and creative production through posting, performance analysis and optimization, is available in a single interface. Marketing campaigns for nearly 400 of the Fortune 500 companies are created on the platform. 

 

Video courtesy of Higgsfield.

Contextual and Content Intelligence at Scale

AI understanding content at the level of meaning requires advanced infrastructure. NVIDIA’s multimodal stack provides the vector search, data processing and video understanding capabilities that make this kind of intelligence viable at production scale.

AI-powered media leader KERV’s Moment Match Engine evaluates a multitude of signals across every video frame and media asset to understand individual scenes, objects and products, providing content recommendations based on ad creative — the visual and textual elements of an advertisement — to drive improved engagement.

 

Video courtesy of KERV.ai.

KERV.ai recently optimized its processing pipeline, achieving over 10x improvements in speed and efficiency when using the NVIDIA Nemotron 3 Nano Omni open model in the platform. KERV’s solution analyzes what each ad or media brief contains, who it resonates with and which exact moment within content environments to target. 

On MediaPerf, an open benchmark for AI video understanding, Nemotron 3 Nano Omni — adopted by ecosystem partners including PYLER, which uses NVIDIA DGX B200 systems — delivered the highest throughput and lowest inference cost of any model evaluated, open or closed source.

Learn more about how NVIDIA powers advertising and marketing technologies.

Featured video courtesy of Higgsfield.

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