It works really well with a ~2% performance penalty. Nvproxy by google/gvisor has been doing this for years.
You should try running it yourself and see how it goes :D
And each one would have its own Nvidia driver? How do they not interfere with each other? I mean I am by no means an expert in GPU architecture or anything similar, but I thought the problems with sharing a GPU come from the differences between GPU vs CPU architecture. On the other hand, multiple processes on a host can run on the same GPU, but that is all using the same kernel. I am just very confused.
However, nvgpu is meant to be used in PCI passthrough in scenarios where you would want to run and share your GPU across multiple KVM guests, or you don't want to detach the GPU from the host, and plug it into the VM you are running... you know, that little dance you do everytime you want to game inside a VM.
> just using PCI passthrough
But the NVIDIA dGPU is muxless, so apparently all of the display outputs (laptop screen, HDMI outputs) are effectively hard wired to the iGPU. dGPU can render in a VM, it just has no where it can send it without trying to use Looking Glass or similar approach.