I'm completely speechless. This looks so terrible I thought it was a joke, but apparently Nvidia released these demos to impress people. DLSS 5 runs the entire game through an AI filter, making every character look like it's running through an ultra realistic beauty filter.
The photo above is used as the promo image for the official blog post by the way. It completely ignores artistic intent and makes Grace's face look "sexier" because apparently that's what realism looks like now.
I wouldn't be so baffled if this was some experimental setting they were testing, but they're advertising this as the next gen DLSS. As in, this is their image of what the future of gaming should be. A massive F U to every artist in the industry. Well done, Nvidia.
You're right that there is an internal representation for tokens and token sequences, but they also do copy. There is a whole area of research on this, and here is an example article on extracting image datasets.