Nvidia's new tech reduces VRAM usage by up to 96% in beta demo

Can someone ELI5, are the RTX Neural Texture Compression Generative? Or is it good old fashion compression? My brain cant comprehend how you can get 90% compression ratio.

If it work, and works across all type of graphics. It will save on Bandwidth and Memory. Because Cost per Memory Capacity, Bandwidth hasn't been keeping up with the GPU.