You are probably looking for something like games on whales https://games-on-whales.github.io/. If you have an extra weak gpu or an integrated one besides your 9070xt, you can use that for the video transcoding and the big gpu for the game rendering
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Just to root out the x-y factor, could you elaborate on your goals and how you wish to use it? I think "multi-seat" is a bit of a fuzzy term at this point and perhaps other solutions than what it's typically referring to is more appropriate for your use-case.
I haven't set up a single-GPU classic multiseat myself but a cursory reading from Debian wiki and Arch wiki Talk say it should be possible. There is mention of Xephyr, which QubesOS is using to do something similar with their "GUI domain". Maybe looking at that can be useful for you.
Two other things to consider could be VM with PCI-passthrough of the GPU (this does require a second GPU or an APU/iGPU in order to still have graphics on the host OS), or running secondary X servers with TigerVNC that you can then run fullscreen using vncviewer. The latter scales very well on a single GPU and works great for usual desktop/browser/dev but I'd be curious about gaming performance.
https://doc.qubes-os.org/en/latest/user/advanced-topics/gui-domain.html
https://doc.qubes-os.org/en/latest/developer/system/gui.html
The uhh a16 I think is four gpu card intended for remote working that would be a natural fit to this. Except that it has no outputs.
You can do what you’re asking about in x, but I don’t think in Wayland.
How do you do it with x? I would be interested in looking at this.
I think in theory it could be done in Wayland if a compositor implements multi-seat support. There is a fork of wlroots & labwc in this repo that seems like it's trying to do that https://github.com/garlett/multiseat
Typically this is achieved in x11 with x forwarding. Performance won't be great.
However: you may want to investigate using a hypervisor and a VM for each seat, and a dedicated GPU for each seat. To share GPU between seats, you will need a GPU and motherboard that support sr-iov, which is hard to find, hard to use, and expensive.
I built a hyper-converged box like this and I can tell you the GPU isn't the obstacle, it's peripherals. Mice, keyboard, video output, that is what people want to be flexible.
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