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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.

 

Firebird Launches CIS Region’s Largest AI Factory in Armenia

Firebird, NVIDIA, Dell Technologies, CoreWeave and regional leaders mark a milestone in building AI infrastructure to support economic growth, scientific research and technological advancements.
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The global buildout of AI infrastructure reached a new milestone today — Firebird, an emerging AI cloud, launched the CIS region’s largest AI factory in Armenia, establishing a new AI computing hub powered by NVIDIA accelerated computing and Dell Technologies high-performance AI infrastructure

Nikol Pashinyan, prime minister of the Republic of Armenia; Zhaslan Madiyev, deputy prime minister of the Republic of Kazakhstan; and David Allen, U.S. chargé d`affaires, a.i. in Armenia, attended the AI factory opening ceremony. 

AI factories are the foundational infrastructure for the AI era, providing the computing capacity needed to train, fine-tune and deploy AI models for every domain at scale.

Building the Infrastructure to Create Intelligence at Home

While AI services are available globally, countries also need the capacity to develop and run AI for their own languages, industries and national priorities. Firebird’s AI factory brings that capacity to Armenia, giving developers, startups, enterprises, universities and public institutions the compute to build and scale AI at home.

Firebird plans to deploy more than 70,000 NVIDIA Rubin and Blackwell GPUs and 300 megawatts of AI infrastructure capacity in Armenia by the end of 2027, accelerating the country’s development as a center for AI research, advanced computing and innovation. 

“Our ambition for what we are building in the next 2 years or so is roughly 2 gigawatts of capacity around the world. We’re very focused on merging into frontier markets,” said Alexander Yesayan, co-founder of Firebird.

At this scale, energy efficiency is essential. Built on the NVIDIA DSX platform, this AI factory integrates accelerated computing, networking, power and cooling as one codesigned system. Firebird’s AI factory is designed from the ground up to turn compute into revenue. With DSX, it can run up to 40% more GPUs on the same footprint, producing more tokens per dollar and extracting more value from every megawatt of capacity.

A Magnet for Global AI, a Catalyst for Local Innovation

Firebird’s ambitions extend beyond a single site. With NVIDIA’s support, the company is pursuing an approximately 2-gigawatt AI infrastructure roadmap spanning Armenia, Kazakhstan and additional markets. 

Firebird also announced that NVIDIA intends to invest in the company, following an earlier investment by CoreWeave this year. These investments will help Firebird expand its global infrastructure and operational footprint, and support its efforts to establish the largest and most advanced compute clusters across frontier markets.

Delivered in just over six months, the Armenia AI factory demonstrates Firebird’s ability to turn ambitious infrastructure plans into operational AI capacity with exceptional speed.

Schneider Electric provides the power infrastructure supporting Firebird’s AI factory in Hrazdan, helping Firebird meet its accelerated deployment schedule by rapidly delivering and setting up critical systems, including medium- and low-voltage switchgear, three-phase uninterruptible power supply systems and rack enclosures. This keeps the power buildout moving at the pace of the compute and provides a reliable foundation to bring NVIDIA accelerated computing online at scale.

To support the facility’s thermal needs, Vertiv provided a cooling architecture combining chilled-water technology, advanced controls and Vertiv TrimCooler technology for efficient heat rejection. Vertiv’s iCOM CWM Chilled Water Manager centrally coordinates cooling resources, improving visibility, efficiency and responsiveness as demand shifts with AI workloads.

Early demand is coming from AI-native companies including Perplexity, which is working with Firebird to access high-performance AI infrastructure for its AI agent platform and answer engine. 

As AI becomes essential infrastructure worldwide, Firebird’s expansion can help make the CIS region a magnet for global companies building and running AI — and a catalyst for local developers, researchers and enterprises. 

Powered by NVIDIA’s total AI factory platform — reference architecture, accelerated computing, networking and AI software — and deployed on Dell PowerEdge servers, the new Firebird AI factory will help Armenia’s builders turn energy into intelligence and connect their innovations to the global AI economy.

 

 

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Into the Omniverse: How Open World Models Push the Frontier of Physical AI

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Editor’s note: This post is part of Into the Omniverse, a series focused on how developers, 3D practitioners and enterprises can transform their workflows using the latest advancements in OpenUSD and NVIDIA Omniverse.

In July, NVIDIA joined more than 200 companies and organizations in signing “Open Weights and American AI Leadership,” an open letter arguing that AI leadership will be measured not by any single frontier model but by whether an open ecosystem reaches every sector. 

Open models, which anyone can download, inspect, modify and run on their own infrastructure, are what make that possible. Nowhere is that more crucial than in physical AI, where every deployment is a specialization problem.

Physical AI has to understand and predict consequences, not just appearances. 

To make this possible, world models learn how physical environments behave, what may happen next and which following actions make sense. They can generate physically grounded world and action data, simulate future states and provide a foundation that teams can specialize for a robot, autonomous vehicle or vision AI system.

Open world models are already being used to generate training data, test policies and specialize physical AI systems. NVIDIA Cosmos 3 brings these capabilities together in an open model family, with leading benchmark results and adoption across robotics, autonomous vehicles and vision AI.

And NVIDIA Omniverse libraries, part of NVIDIA Agent Toolkit, provides prebuilt capabilities for building simulation-ready worlds that physical AI teams can use to train, test and validate systems before real-world deployment.

World Models Are the Foundation of Physical AI

The data behind physical AI is difficult and expensive to collect at the scale required. Rare events and long-tail scenarios can be especially difficult to reproduce safely and repeatedly. 

World models enable:

  • More useful data by learning physical relationships from large-scale multimodal scenarios.

  • More diverse environments that vary in weather, lighting, objects and trajectories.

  • A better foundation to build on and adapt to a particular robot, vehicle, sensor configuration, task or operating environment. 

 

A general model hasn’t seen a team’s particular robot, sensors or operating environment. Closing that gap requires access to model weights, a license that permits adaptation and the tools needed for post-training. 

NVIDIA Cosmos world foundation models are available under the Linux Foundation’s OpenMDW 1.1 license, enabling teams to post-train models on their own data and hardware. Specialization is where openness becomes a practical technical requirement.

Specializing a model is only part of the workflow. Teams also need environments to generate data, run simulations and test behavior. 

Omniverse libraries help developers build simulation-ready environments, while OpenUSD provides the open framework for composing, reusing and exchanging complex 3D data across digital twins, simulations and synthetic data generation workflows. Together, Omniverse and OpenUSD cut the duplicated work that can otherwise pile up every time assets, sensor configurations or environmental conditions change.

Cosmos 3: The Frontier Model

NVIDIA Cosmos 3 — a frontier open physical AI foundation omni-model built on a mixture-of-transformers architecture — combines vision reasoning, world generation and action prediction, letting developers use one model family to understand scenes, generate synthetic data, simulate future states and build specialized world action models.

Developers can use Cosmos 3 as a vision language model, as a physics-grounded world simulator that predicts future world states and generates large-scale synthetic data, or as the backbone for world action models, instead of assembling and maintaining a separate model for each capability.

The family includes Cosmos 3 Super (64B) for high-fidelity world modeling, Cosmos 3 Nano (16B) for efficient reasoning and post-training, and Cosmos 3 Edge (4B) for on-device vision reasoning and robot policy deployment. Lightweight enough to run on edge GPUs, Cosmos 3 Edge can be deployed across NVIDIA RTX GPUs, NVIDIA DGX systems and NVIDIA Jetson, including Jetson Thor platforms.

Across benchmark evaluations, Cosmos 3 ranks No. 1 on Artificial Analysis for open weights text-to-image and image-to-video generation, on PAI-Bench for world generation and in the image-to-video category of Physics-IQ. For robot policy, it ranks No. 1 on RoboLab. Cosmos 3 Super is also the highest-ranked open model on VANTAGE-Bench for vision understanding.


In addition to Cosmos, NVIDIA’s physical AI stack includes Isaac GR00T for robotics, Alpamayo for autonomous vehicles and Metropolis for vision AI. 

How Developers Are Putting Cosmos 3 to Work

Across industries, developers are building on NVIDIA Cosmos for physical AI applications: Doosan Robotics, LG Electronics, Samsung Electronics and Skild AI in robotics; Li Auto, Xiaomi and Afari in autonomous vehicles; and Centific, Fogsphere, Linker Vision, Milestone Systems and Yuan for vision AI agents powering industrial AI and smart spaces applications.

The NVIDIA Cosmos Coalition extends this work by bringing together world model builders, AI developers and physical AI leaders to contribute models, research and evaluation methods. NVIDIA recently expanded the coalition to Japan, where robotics and manufacturing leaders intend to join and develop open world models for factories, logistics, agriculture, construction, healthcare and transportation.

Together, these implementations and collaborations are establishing open world models as an adaptable foundation for physical AI across robots, autonomous vehicles and vision AI systems.

Get Plugged In

Learn more about world models, OpenUSD and physical AI development by exploring these resources:

NVIDIA and Partners Build in America, for America

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