diff --git a/README.md b/README.md
index 05c7942..077fd9c 100644
--- a/README.md
+++ b/README.md
@@ -82,6 +82,27 @@ The important thing to note is that nanochat is written and configured around on
 
 The script [runs/runcpu.sh](runs/runcpu.sh) shows a very simple example of running on CPU or Apple Silicon. It dramatically shrinks the LLM that is being trained to make things fit into a reasonable time interval of a few ten minutes of training. You will not get strong results in this way.
 
+## Precision / dtype
+
+nanochat does not use `torch.amp.autocast`. Instead, precision is managed explicitly through a single global `COMPUTE_DTYPE` (defined in `nanochat/common.py`). By default this is auto-detected based on your hardware:
+
+| Hardware | Default dtype | Why |
+|----------|--------------|-----|
+| CUDA SM 80+ (A100, H100, ...) | `bfloat16` | Native bf16 tensor cores |
+| CUDA SM < 80 (V100, T4, ...) | `float32` | No bf16; fp16 available via `NANOCHAT_DTYPE=float16` (uses GradScaler) |
+| CPU / MPS | `float32` | No reduced-precision tensor cores |
+
+You can override the default with the `NANOCHAT_DTYPE` environment variable:
+
+```bash
+NANOCHAT_DTYPE=float32 python -m scripts.chat_cli -p "hello"   # force fp32
+NANOCHAT_DTYPE=bfloat16 torchrun --nproc_per_node=8 -m scripts.base_train  # force bf16
+```
+
+How it works: model weights are stored in fp32 (for optimizer precision), but our custom `Linear` layer casts them to `COMPUTE_DTYPE` during the forward pass. Embeddings are stored directly in `COMPUTE_DTYPE` to save memory. This gives us the same mixed-precision benefit as autocast but with full explicit control over what runs in which precision.
+
+Note: `float16` training automatically enables a `GradScaler` in `base_train.py` to prevent gradient underflow. SFT suppors this too but RL currently does not. Inference in fp16 works fine everywhere.
+
 ## Guides
 
 I've published a number of guides that might contain helpful information, most recent to least recent:
diff --git a/dev/LOG.md b/dev/LOG.md
index b4b3757..fd5c3c7 100644
--- a/dev/LOG.md
+++ b/dev/LOG.md
@@ -4,6 +4,41 @@ A running summary documenting some experiments and findings. Started ~Jan 7 2026
 
 ---
 
+## 2026-03-04: Remove autocast, explicit dtype management, fp16 GradScaler
+
+Replaced `torch.amp.autocast` throughout the codebase with explicit dtype management via a single `COMPUTE_DTYPE` global. Also added fp16 training support with GradScaler.
+
+### Motivation
+
+autocast is "magic we don't control" — it silently decides which ops run in which precision via internal allowlists. For this codebase, autocast was doing very little: the only thing it actually cast was `nn.Linear` weights from fp32 to bf16 for matmuls. `F.rms_norm`, `F.cross_entropy`, and Flash Attention all handle their own dtypes already. By making precision explicit, we gain fine-grained control (e.g. can experiment with fp32 norms) and eliminate an unnecessary layer of abstraction.
+
+### What changed
+
+**Core mechanism** (`nanochat/common.py`, `nanochat/gpt.py`):
+- `COMPUTE_DTYPE` auto-detected from hardware: SM 80+ → bf16, pre-Ampere → fp32, CPU/MPS → fp32. Override via `NANOCHAT_DTYPE` env var.
+- Custom `Linear(nn.Linear)` class that casts weights to match input dtype in forward: `F.linear(x, self.weight.to(dtype=x.dtype))`. This is the single mechanism that replaces autocast.
+- Embeddings cast to `COMPUTE_DTYPE` at init (saves memory). Exception: fp16 keeps embeddings fp32 because GradScaler cannot unscale fp16 gradients.
+- Embedding output explicitly cast to `COMPUTE_DTYPE` in `GPT.forward()` (no-op for bf16, active for fp16 path).
+- RoPE cos/sin cache uses `COMPUTE_DTYPE` instead of hardcoded bf16.
+
+**Autocast removal** (11 files):
+- Deleted `--dtype` CLI flag, `ptdtype` variables, `autocast_ctx` definitions, and all `with autocast_ctx:` blocks from: `base_train.py`, `chat_sft.py`, `chat_rl.py`, `chat_cli.py`, `chat_eval.py`, `chat_web.py`, `base_eval.py`, `engine.py`, `bench_train_toks.py`, `test_e2e_pipeline.py`.
+
+**fp16 + GradScaler** (`base_train.py`, `chat_sft.py`):
+- `scaler = torch.amp.GradScaler() if COMPUTE_DTYPE == torch.float16 else None`
+- Backward: `scaler.scale(loss).backward()` vs plain `loss.backward()`
+- After accumulation: `scaler.unscale_(optimizer)` → distributed inf-sync via `scaler._found_inf_per_device(optimizer)` all-reduced with `ReduceOp.MAX` → `scaler.step(optimizer)` → `scaler.update()`
+- Zero overhead for bf16/fp32 paths (scaler is None, no branching inside kernels).
+
+**FP8 fix** (`nanochat/fp8.py`, `base_train.py`):
+- `Float8Linear.forward` explicitly casts input to `COMPUTE_DTYPE` (previously relied on autocast).
+- `disable_fp8` context manager now creates our custom `Linear` (not vanilla `nn.Linear`) when swapping out Float8Linear during eval.
+
+**Flash Attention** (`flash_attention.py`):
+- FA3 Hopper kernels don't support fp16 or fp32, so `USE_FA3` (module-level constant, resolved once at import) returns False, falling back to SDPA.
+
+---
+
 ## 2026-03-04: Dataset upgrade: FineWeb-EDU 100B → ClimbMix 400B
 
 Switched the pretraining dataset from FineWeb-EDU 100B to ClimbMix 400B. This is by far the single biggest improvement to nanochat's GPT-2 speedrun time, bringing it down from **2 hours 46 minutes to 2 hours 1 minute** — a 27% reduction.
diff --git a/nanochat/common.py b/nanochat/common.py
index 2dd0792..bd14fd2 100644
--- a/nanochat/common.py
+++ b/nanochat/common.py
@@ -10,6 +10,26 @@ import torch
 import torch.distributed as dist
 from filelock import FileLock
 
+# The dtype used for compute (matmuls, activations). Master weights stay fp32 for optimizer precision.
+# Linear layers cast their weights to this dtype in forward, replacing torch.amp.autocast.
+# Override with NANOCHAT_DTYPE env var: "bfloat16", "float16", "float32"
+_DTYPE_MAP = {"bfloat16": torch.bfloat16, "float16": torch.float16, "float32": torch.float32}
+def _detect_compute_dtype():
+    env = os.environ.get("NANOCHAT_DTYPE")
+    if env is not None:
+        return _DTYPE_MAP[env], f"set via NANOCHAT_DTYPE={env}"
+    if torch.cuda.is_available():
+        # bf16 requires SM 80+ (Ampere: A100, A10, etc.)
+        # Older GPUs like V100 (SM 70) and T4 (SM 75) only have fp16 tensor cores
+        capability = torch.cuda.get_device_capability()
+        if capability >= (8, 0):
+            return torch.bfloat16, f"auto-detected: CUDA SM {capability[0]}{capability[1]} (bf16 supported)"
+        # fp16 training requires GradScaler (not yet implemented), so fall back to fp32.
+        # Users can still force fp16 via NANOCHAT_DTYPE=float16 if they know what they're doing.
+        return torch.float32, f"auto-detected: CUDA SM {capability[0]}{capability[1]} (pre-Ampere, bf16 not supported, using fp32)"
+    return torch.float32, "auto-detected: no CUDA (CPU/MPS)"
+COMPUTE_DTYPE, COMPUTE_DTYPE_REASON = _detect_compute_dtype()
+
 class ColoredFormatter(logging.Formatter):
     """Custom formatter that adds colors to log messages."""
     # ANSI color codes
diff --git a/nanochat/engine.py b/nanochat/engine.py
index a1ba24c..4724c8f 100644
--- a/nanochat/engine.py
+++ b/nanochat/engine.py
@@ -19,7 +19,6 @@ from contextlib import contextmanager
 from collections import deque
 from nanochat.common import compute_init, autodetect_device_type
 from nanochat.checkpoint_manager import load_model
-from contextlib import nullcontext
 
 # -----------------------------------------------------------------------------
 # Calculator tool helpers
@@ -308,8 +307,6 @@ if __name__ == "__main__":
     # init compute
     device_type = autodetect_device_type()
     ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
-    autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=torch.bfloat16) if device_type == "cuda" else nullcontext()
-
     # load the model and tokenizer
     model, tokenizer, meta = load_model("base", device, phase="eval")
     bos_token_id = tokenizer.get_bos_token_id()
@@ -322,11 +319,10 @@ if __name__ == "__main__":
     torch.cuda.synchronize()
     t0 = time.time()
     stream = model.generate(prompt_tokens, **kwargs)
-    with autocast_ctx:
-        for token in stream:
-            generated_tokens.append(token)
-            chunk = tokenizer.decode([token])
-            print(chunk, end="", flush=True)
+    for token in stream:
+        generated_tokens.append(token)
+        chunk = tokenizer.decode([token])
+        print(chunk, end="", flush=True)
     print()
     torch.cuda.synchronize()
     t1 = time.time()
@@ -338,12 +334,11 @@ if __name__ == "__main__":
     stream = engine.generate(prompt_tokens, num_samples=1, **kwargs) # note: runs in fp32
     torch.cuda.synchronize()
     t0 = time.time()
-    with autocast_ctx:
-        for token_column, token_masks in stream:
-            token = token_column[0] # only print out the first row
-            generated_tokens.append(token)
-            chunk = tokenizer.decode([token])
-            print(chunk, end="", flush=True)
+    for token_column, token_masks in stream:
+        token = token_column[0] # only print out the first row
+        generated_tokens.append(token)
+        chunk = tokenizer.decode([token])
+        print(chunk, end="", flush=True)
     print()
     torch.cuda.synchronize()
     t1 = time.time()
diff --git a/nanochat/flash_attention.py b/nanochat/flash_attention.py
index 89ca42b..af2aee3 100644
--- a/nanochat/flash_attention.py
+++ b/nanochat/flash_attention.py
@@ -45,14 +45,22 @@ HAS_FA3 = _fa3 is not None
 _override_impl = None
 
 
-def _use_fa3():
-    """Determine whether to use FA3 based on availability and override."""
+def _resolve_use_fa3():
+    """Decide once whether to use FA3, based on availability, override, and dtype."""
     if _override_impl == 'fa3':
         assert HAS_FA3, "Cannot override to FA3: not available on this hardware"
         return True
     if _override_impl == 'sdpa':
         return False
-    return HAS_FA3  # auto
+    if HAS_FA3:
+        # FA3 Hopper kernels only support bf16 and fp8; fp16/fp32 must use SDPA fallback
+        from nanochat.common import COMPUTE_DTYPE
+        if COMPUTE_DTYPE == torch.bfloat16:
+            return True
+        return False
+    return False
+
+USE_FA3 = _resolve_use_fa3()
 
 
 # =============================================================================
@@ -90,7 +98,7 @@ def _sdpa_attention(q, k, v, window_size, enable_gqa):
     # sliding window (left)
     if window >= 0 and window < Tk:
         mask = mask & ((row_idx - col_idx) <= window)
-    
+
     return F.scaled_dot_product_attention(q, k, v, attn_mask=mask, enable_gqa=enable_gqa)
 
 # =============================================================================
@@ -108,7 +116,7 @@ def flash_attn_func(q, k, v, causal=False, window_size=(-1, -1)):
     Returns:
         Output tensor of shape (B, T, H, D)
     """
-    if _use_fa3():
+    if USE_FA3:
         return _fa3.flash_attn_func(q, k, v, causal=causal, window_size=window_size)
 
     # SDPA fallback: transpose (B, T, H, D) -> (B, H, T, D)
@@ -138,7 +146,7 @@ def flash_attn_with_kvcache(q, k_cache, v_cache, k=None, v=None, cache_seqlens=N
     Returns:
         Output tensor of shape (B, T_new, H, D)
     """
-    if _use_fa3():
+    if USE_FA3:
         return _fa3.flash_attn_with_kvcache(
             q, k_cache, v_cache, k=k, v=v, cache_seqlens=cache_seqlens,
             causal=causal, window_size=window_size
diff --git a/nanochat/fp8.py b/nanochat/fp8.py
index 3e88285..f9bf8d5 100644
--- a/nanochat/fp8.py
+++ b/nanochat/fp8.py
@@ -72,6 +72,8 @@ generates a different graph. Numerics are bitwise identical in eager mode.
 import torch
 import torch.nn as nn
 
+from nanochat.common import COMPUTE_DTYPE
+
 # Avoid division by zero when computing scale from an all-zeros tensor
 EPS = 1e-12
 
@@ -123,7 +125,7 @@ def _to_col_major(x):
 class _Float8Matmul(torch.autograd.Function):
     """Custom autograd for the three FP8 GEMMs of a Linear layer.
 
-    The forward quantizes input and weight to FP8 and saves 
+    The forward quantizes input and weight to FP8 and saves
     the quantized tensors + scales for backward.
     """
 
@@ -198,11 +200,9 @@ class Float8Linear(nn.Linear):
     """
 
     def forward(self, input):
-        # Replicate the autocast behavior of F.linear — when autocast is active,
-        # we need to manually cast input to the autocast dtype (e.g. bf16),
-        # since we bypass F.linear's built-in autocast handling.
-        if torch.is_autocast_enabled():
-            input = input.to(torch.get_autocast_gpu_dtype())
+        # Cast input to COMPUTE_DTYPE (typically bf16) since _scaled_mm expects
+        # reduced precision input, and we no longer rely on autocast to do this.
+        input = input.to(COMPUTE_DTYPE)
         # _scaled_mm only works on 2D tensors, so flatten batch dimensions
         orig_shape = input.shape
         input_2d = input.reshape(-1, orig_shape[-1])
diff --git a/nanochat/gpt.py b/nanochat/gpt.py
index 74e39fd..04ee5c5 100644
--- a/nanochat/gpt.py
+++ b/nanochat/gpt.py
@@ -19,7 +19,7 @@ import torch
 import torch.nn as nn
 import torch.nn.functional as F
 
-from nanochat.common import get_dist_info, print0
+from nanochat.common import get_dist_info, print0, COMPUTE_DTYPE
 from nanochat.optim import MuonAdamW, DistMuonAdamW
 
 # Our custom Flash Attention module that automatically uses FA3 on Hopper+ and SDPA fallback elsewhere
@@ -40,8 +40,14 @@ class GPTConfig:
 
 
 def norm(x):
-    # Purely functional rmsnorm with no learnable params
-    return F.rms_norm(x, (x.size(-1),))
+    return F.rms_norm(x, (x.size(-1),)) # note that this will run in bf16, seems ok
+
+class Linear(nn.Linear):
+    """nn.Linear that casts weights to match input dtype in forward.
+    Replaces autocast: master weights stay fp32 for optimizer precision,
+    but matmuls run in the activation dtype (typically bf16 from embeddings)."""
+    def forward(self, x):
+        return F.linear(x, self.weight.to(dtype=x.dtype))
 
 
 def has_ve(layer_idx, n_layer):
@@ -66,12 +72,12 @@ class CausalSelfAttention(nn.Module):
         self.head_dim = self.n_embd // self.n_head
         assert self.n_embd % self.n_head == 0
         assert self.n_kv_head <= self.n_head and self.n_head % self.n_kv_head == 0
-        self.c_q = nn.Linear(self.n_embd, self.n_head * self.head_dim, bias=False)
-        self.c_k = nn.Linear(self.n_embd, self.n_kv_head * self.head_dim, bias=False)
-        self.c_v = nn.Linear(self.n_embd, self.n_kv_head * self.head_dim, bias=False)
-        self.c_proj = nn.Linear(self.n_embd, self.n_embd, bias=False)
+        self.c_q = Linear(self.n_embd, self.n_head * self.head_dim, bias=False)
+        self.c_k = Linear(self.n_embd, self.n_kv_head * self.head_dim, bias=False)
+        self.c_v = Linear(self.n_embd, self.n_kv_head * self.head_dim, bias=False)
+        self.c_proj = Linear(self.n_embd, self.n_embd, bias=False)
         self.ve_gate_channels = 32
-        self.ve_gate = nn.Linear(self.ve_gate_channels, self.n_kv_head, bias=False) if has_ve(layer_idx, config.n_layer) else None
+        self.ve_gate = Linear(self.ve_gate_channels, self.n_kv_head, bias=False) if has_ve(layer_idx, config.n_layer) else None
 
     def forward(self, x, ve, cos_sin, window_size, kv_cache):
         B, T, C = x.size()
@@ -121,8 +127,8 @@ class CausalSelfAttention(nn.Module):
 class MLP(nn.Module):
     def __init__(self, config):
         super().__init__()
-        self.c_fc = nn.Linear(config.n_embd, 4 * config.n_embd, bias=False)
-        self.c_proj = nn.Linear(4 * config.n_embd, config.n_embd, bias=False)
+        self.c_fc = Linear(config.n_embd, 4 * config.n_embd, bias=False)
+        self.c_proj = Linear(4 * config.n_embd, config.n_embd, bias=False)
 
     def forward(self, x):
         x = self.c_fc(x)
@@ -164,7 +170,7 @@ class GPT(nn.Module):
             "wte": nn.Embedding(padded_vocab_size, config.n_embd),
             "h": nn.ModuleList([Block(config, layer_idx) for layer_idx in range(config.n_layer)]),
         })
-        self.lm_head = nn.Linear(config.n_embd, padded_vocab_size, bias=False)
+        self.lm_head = Linear(config.n_embd, padded_vocab_size, bias=False)
         # Per-layer learnable scalars (inspired by modded-nanogpt)
         # resid_lambdas: scales the residual stream at each layer (init 1.0 = neutral)
         # x0_lambdas: blends initial embedding back in at each layer (init 0.0 = disabled)
@@ -234,11 +240,13 @@ class GPT(nn.Module):
         cos, sin = self._precompute_rotary_embeddings(self.rotary_seq_len, head_dim)
         self.cos, self.sin = cos, sin
 
-        # Cast embeddings to bf16: optimizer can tolerate it and it saves memory
-        if self.transformer.wte.weight.device.type == "cuda":
-            self.transformer.wte.to(dtype=torch.bfloat16)
+        # Cast embeddings to COMPUTE_DTYPE: optimizer can tolerate reduced-precision
+        # embeddings and it saves memory. Exception: fp16 requires fp32 embeddings
+        # because GradScaler cannot unscale fp16 gradients.
+        if COMPUTE_DTYPE != torch.float16:
+            self.transformer.wte.to(dtype=COMPUTE_DTYPE)
             for ve in self.value_embeds.values():
-                ve.to(dtype=torch.bfloat16)
+                ve.to(dtype=COMPUTE_DTYPE)
 
     def _precompute_rotary_embeddings(self, seq_len, head_dim, base=10000, device=None):
         # TODO: bump base theta more? e.g. 100K is more common more recently
@@ -253,7 +261,7 @@ class GPT(nn.Module):
         # calculate the rotation frequencies at each (time, channel) pair
         freqs = torch.outer(t, inv_freq)
         cos, sin = freqs.cos(), freqs.sin()
-        cos, sin = cos.bfloat16(), sin.bfloat16() # keep them in bfloat16
+        cos, sin = cos.to(COMPUTE_DTYPE), sin.to(COMPUTE_DTYPE)
         cos, sin = cos[None, :, None, :], sin[None, :, None, :] # add batch and head dims for later broadcasting
         return cos, sin
 
@@ -391,18 +399,19 @@ class GPT(nn.Module):
         # Grab the rotary embeddings for the current sequence length (they are of shape (1, seq_len, 1, head_dim/2))
         assert T <= self.cos.size(1), f"Sequence length grew beyond the rotary embeddings cache: {T} > {self.cos.size(1)}"
         assert idx.device == self.cos.device, f"Rotary embeddings and idx are on different devices: {idx.device} != {self.cos.device}"
-        assert self.cos.dtype == torch.bfloat16, "Rotary embeddings must be in bfloat16"
+        assert self.cos.dtype == COMPUTE_DTYPE, f"Rotary embeddings must be in {COMPUTE_DTYPE}, got {self.cos.dtype}"
         # if kv cache exists, we need to offset the rotary embeddings to the current position in the cache
         T0 = 0 if kv_cache is None else kv_cache.get_pos()
         cos_sin = self.cos[:, T0:T0+T], self.sin[:, T0:T0+T] # truncate cache to current sequence length
 
         # Forward the trunk of the Transformer
         x = self.transformer.wte(idx) # embed current token
+        x = x.to(COMPUTE_DTYPE) # ensure activations are in compute dtype (no-op usually, but active for fp16 code path)
         x = norm(x)
         x0 = x  # save initial normalized embedding for x0 residual
         for i, block in enumerate(self.transformer.h):
             x = self.resid_lambdas[i] * x + self.x0_lambdas[i] * x0
-            ve = self.value_embeds[str(i)](idx) if str(i) in self.value_embeds else None
+            ve = self.value_embeds[str(i)](idx).to(x.dtype) if str(i) in self.value_embeds else None
             x = block(x, ve, cos_sin, self.window_sizes[i], kv_cache)
         x = norm(x)
 
diff --git a/scripts/base_eval.py b/scripts/base_eval.py
index e45ae43..a57bbaf 100644
--- a/scripts/base_eval.py
+++ b/scripts/base_eval.py
@@ -29,8 +29,6 @@ import random
 import zipfile
 import tempfile
 import argparse
-from contextlib import nullcontext
-
 import torch
 
 from nanochat.common import compute_init, compute_cleanup, print0, get_base_dir, autodetect_device_type, download_file_with_lock
@@ -199,8 +197,6 @@ def main():
     # Distributed / precision setup
     device_type = autodetect_device_type() if args.device_type == '' else args.device_type
     ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
-    autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=torch.bfloat16) if device_type == "cuda" else nullcontext()
-
     # Load model and tokenizer
     is_hf_model = args.hf_path is not None
     if is_hf_model:
@@ -244,8 +240,7 @@ def main():
             print0("\nConditioned samples:")
             for prompt in prompts:
                 tokens = tokenizer(prompt, prepend="<|bos|>")
-                with autocast_ctx:
-                    sample, _ = engine.generate_batch(tokens, num_samples=1, max_tokens=16, temperature=0)
+                sample, _ = engine.generate_batch(tokens, num_samples=1, max_tokens=16, temperature=0)
                 sample_str = tokenizer.decode(sample[0])
                 print0("-" * 80)
                 print0(sample_str)
@@ -253,8 +248,7 @@ def main():
 
             print0("\nUnconditioned samples:")
             tokens = tokenizer("", prepend="<|bos|>")
-            with autocast_ctx:
-                uncond, _ = engine.generate_batch(tokens, num_samples=8, max_tokens=128, temperature=1.0)
+            uncond, _ = engine.generate_batch(tokens, num_samples=8, max_tokens=128, temperature=1.0)
             for sample in uncond:
                 sample_str = tokenizer.decode(sample)
                 print0("-" * 80)
@@ -277,8 +271,7 @@ def main():
 
         for split_name in ["train", "val"]:
             loader = tokenizing_distributed_data_loader_bos_bestfit(tokenizer, args.device_batch_size, sequence_len, split_name, device=device)
-            with autocast_ctx:
-                bpb = evaluate_bpb(model, loader, steps, token_bytes)
+            bpb = evaluate_bpb(model, loader, steps, token_bytes)
             bpb_results[split_name] = bpb
             print0(f"{split_name} bpb: {bpb:.6f}")
 
@@ -287,8 +280,7 @@ def main():
         print0("\n" + "="*80)
         print0("CORE Evaluation")
         print0("="*80)
-        with autocast_ctx:
-            core_results = evaluate_core(model, tokenizer, device, max_per_task=args.max_per_task)
+        core_results = evaluate_core(model, tokenizer, device, max_per_task=args.max_per_task)
 
         # Write CSV output
         if ddp_rank == 0:
diff --git a/scripts/base_train.py b/scripts/base_train.py
index 9461e88..4bf7959 100644
--- a/scripts/base_train.py
+++ b/scripts/base_train.py
@@ -19,14 +19,15 @@ import time
 import math
 import argparse
 from dataclasses import asdict
-from contextlib import nullcontext, contextmanager
+from contextlib import contextmanager
 
 import wandb
 import torch
+import torch.distributed as dist
 
-from nanochat.gpt import GPT, GPTConfig
+from nanochat.gpt import GPT, GPTConfig, Linear
 from nanochat.dataloader import tokenizing_distributed_data_loader_bos_bestfit, tokenizing_distributed_data_loader_with_state_bos_bestfit
-from nanochat.common import compute_init, compute_cleanup, print0, DummyWandb, print_banner, get_base_dir, autodetect_device_type, get_peak_flops
+from nanochat.common import compute_init, compute_cleanup, print0, DummyWandb, print_banner, get_base_dir, autodetect_device_type, get_peak_flops, COMPUTE_DTYPE, COMPUTE_DTYPE_REASON, is_ddp_initialized
 from nanochat.tokenizer import get_tokenizer, get_token_bytes
 from nanochat.checkpoint_manager import save_checkpoint, load_checkpoint
 from nanochat.loss_eval import evaluate_bpb
@@ -86,7 +87,6 @@ user_config = vars(args).copy()  # for logging
 device_type = autodetect_device_type() if args.device_type == "" else args.device_type
 ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
 master_process = ddp_rank == 0 # this process will do logging, checkpointing etc.
-autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=torch.bfloat16) if device_type == "cuda" else nullcontext()
 synchronize = torch.cuda.synchronize if device_type == "cuda" else lambda: None
 get_max_memory = torch.cuda.max_memory_allocated if device_type == "cuda" else lambda: 0
 if device_type == "cuda":
@@ -95,17 +95,23 @@ if device_type == "cuda":
     print0(f"GPU: {gpu_device_name} | Peak FLOPS (BF16): {gpu_peak_flops:.2e}")
 else:
     gpu_peak_flops = float('inf')  # MFU not meaningful for CPU/MPS
+print0(f"COMPUTE_DTYPE: {COMPUTE_DTYPE} ({COMPUTE_DTYPE_REASON})")
 
 # wandb logging init
 use_dummy_wandb = args.run == "dummy" or not master_process
 wandb_run = DummyWandb() if use_dummy_wandb else wandb.init(project="nanochat", name=args.run, config=user_config)
 
 # Flash Attention status
-if HAS_FA3:
+from nanochat.flash_attention import USE_FA3
+using_fa3 = USE_FA3
+if using_fa3:
     print0("✓ Using Flash Attention 3 (Hopper GPU detected), efficient, new and awesome.")
 else:
     print0("!" * 80)
-    print0("WARNING: Flash Attention 3 not available, using PyTorch SDPA fallback")
+    if HAS_FA3 and COMPUTE_DTYPE != torch.bfloat16:
+        print0(f"WARNING: Flash Attention 3 only supports bf16, but COMPUTE_DTYPE={COMPUTE_DTYPE}. Using PyTorch SDPA fallback")
+    else:
+        print0("WARNING: Flash Attention 3 not available, using PyTorch SDPA fallback")
     print0("WARNING: Training will be less efficient without FA3")
     if args.window_pattern != "L":
         print0(f"WARNING: SDPA has no support for sliding window attention (window_pattern='{args.window_pattern}'). Your GPU utilization will be terrible.")
@@ -213,9 +219,9 @@ def disable_fp8(model):
         yield  # No FP8 modules, nothing to do
         return
 
-    # Swap Float8Linear -> nn.Linear (shares the same weight tensor, no copy)
+    # Swap Float8Linear -> Linear (our custom class that casts weights to match input dtype)
     for parent, attr_name, fp8_module in fp8_locations:
-        linear = nn.Linear(
+        linear = Linear(
             fp8_module.in_features,
             fp8_module.out_features,
             bias=fp8_module.bias is not None,
@@ -315,6 +321,12 @@ if resuming:
     optimizer.load_state_dict(optimizer_data)
     del optimizer_data
 
+# -----------------------------------------------------------------------------
+# GradScaler for fp16 training (bf16/fp32 don't need it — bf16 has the same exponent range as fp32)
+scaler = torch.amp.GradScaler() if COMPUTE_DTYPE == torch.float16 else None
+if scaler is not None:
+    print0("GradScaler enabled for fp16 training")
+
 # -----------------------------------------------------------------------------
 # Initialize the DataLoaders for train/val
 dataloader_resume_state_dict = None if not resuming else meta_data["dataloader_state_dict"]
@@ -405,7 +417,7 @@ while True:
         model.eval()
         val_loader = build_val_loader()
         eval_steps = args.eval_tokens // (args.device_batch_size * args.max_seq_len * ddp_world_size)
-        with disable_fp8(model), autocast_ctx:
+        with disable_fp8(model):
             val_bpb = evaluate_bpb(model, val_loader, eval_steps, token_bytes)
         print0(f"Step {step:05d} | Validation bpb: {val_bpb:.6f}")
         if val_bpb < min_val_bpb:
@@ -424,7 +436,7 @@ while True:
     results = {}
     if args.core_metric_every > 0 and (last_step or (step > 0 and step % args.core_metric_every == 0)):
         model.eval()
-        with disable_fp8(orig_model), autocast_ctx:
+        with disable_fp8(orig_model):
             results = evaluate_core(orig_model, tokenizer, device, max_per_task=args.core_metric_max_per_task)
         print0(f"Step {step:05d} | CORE metric: {results['core_metric']:.4f}")
         wandb_run.log({
@@ -451,7 +463,7 @@ while True:
         engine = Engine(orig_model, tokenizer) # use orig_model to avoid recompilation
         for prompt in prompts:
             tokens = tokenizer(prompt, prepend="<|bos|>")
-            with disable_fp8(orig_model), autocast_ctx:
+            with disable_fp8(orig_model):
                 sample, _ = engine.generate_batch(tokens, num_samples=1, max_tokens=16, temperature=0)
             print0(tokenizer.decode(sample[0]))
         model.train()
@@ -491,11 +503,13 @@ while True:
     synchronize()
     t0 = time.time()
     for micro_step in range(grad_accum_steps):
-        with autocast_ctx:
-            loss = model(x, y)
+        loss = model(x, y)
         train_loss = loss.detach() # for logging
         loss = loss / grad_accum_steps # each .backward() is a grad sum => normalize loss here
-        loss.backward()
+        if scaler is not None:
+            scaler.scale(loss).backward()
+        else:
+            loss.backward()
         x, y, dataloader_state_dict = next(train_loader) # prefetch the next batch while the GPU is busy with forward/backward
     # step the optimizer
     lrm = get_lr_multiplier(step)
@@ -506,7 +520,18 @@ while True:
         if group['kind'] == 'muon':
             group["momentum"] = muon_momentum
             group["weight_decay"] = muon_weight_decay
-    optimizer.step()
+    if scaler is not None:
+        scaler.unscale_(optimizer)
+        # In distributed training, all ranks must agree on whether to skip the step.
+        # Each rank may independently encounter inf/nan gradients, so we all-reduce
+        # the found_inf flag (MAX = if any rank found inf, all ranks skip).
+        if is_ddp_initialized():
+            for v in scaler._found_inf_per_device(optimizer).values():
+                dist.all_reduce(v, op=dist.ReduceOp.MAX)
+        scaler.step(optimizer)
+        scaler.update()
+    else:
+        optimizer.step()
     model.zero_grad(set_to_none=True)
     train_loss_f = train_loss.item() # .item() is a CPU-GPU sync point
     synchronize()
diff --git a/scripts/chat_cli.py b/scripts/chat_cli.py
index 7de7e10..2bcc8aa 100644
--- a/scripts/chat_cli.py
+++ b/scripts/chat_cli.py
@@ -7,7 +7,6 @@ python -m scripts.chat_cli
 import argparse
 import torch
 from nanochat.common import compute_init, autodetect_device_type
-from contextlib import nullcontext
 from nanochat.engine import Engine
 from nanochat.checkpoint_manager import load_model
 
@@ -19,15 +18,12 @@ parser.add_argument('-p', '--prompt', type=str, default='', help='Prompt the mod
 parser.add_argument('-t', '--temperature', type=float, default=0.6, help='Temperature for generation')
 parser.add_argument('-k', '--top-k', type=int, default=50, help='Top-k sampling parameter')
 parser.add_argument('--device-type', type=str, default='', choices=['cuda', 'cpu', 'mps'], help='Device type for evaluation: cuda|cpu|mps. empty => autodetect')
-parser.add_argument('-d', '--dtype', type=str, default='bfloat16', choices=['float32', 'bfloat16'])
 args = parser.parse_args()
 
 # Init the model and tokenizer
 
 device_type = autodetect_device_type() if args.device_type == "" else args.device_type
 ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
-ptdtype = torch.float32 if args.dtype == 'float32' else torch.bfloat16
-autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=ptdtype) if device_type == "cuda" else nullcontext()
 model, tokenizer, meta = load_model(args.source, device, phase="eval", model_tag=args.model_tag, step=args.step)
 
 # Special tokens for the chat state machine
@@ -87,12 +83,11 @@ while True:
     }
     response_tokens = []
     print("\nAssistant: ", end="", flush=True)
-    with autocast_ctx:
-        for token_column, token_masks in engine.generate(conversation_tokens, **generate_kwargs):
-            token = token_column[0] # pop the batch dimension (num_samples=1)
-            response_tokens.append(token)
-            token_text = tokenizer.decode([token])
-            print(token_text, end="", flush=True)
+    for token_column, token_masks in engine.generate(conversation_tokens, **generate_kwargs):
+        token = token_column[0] # pop the batch dimension (num_samples=1)
+        response_tokens.append(token)
+        token_text = tokenizer.decode([token])
+        print(token_text, end="", flush=True)
     print()
     # we have to ensure that the assistant end token is the last token
     # so even if generation ends due to max tokens, we have to append it to the end
diff --git a/scripts/chat_eval.py b/scripts/chat_eval.py
index bc15239..858d4c2 100644
--- a/scripts/chat_eval.py
+++ b/scripts/chat_eval.py
@@ -10,8 +10,6 @@ torchrun --nproc_per_node=8 -m scripts.chat_eval -- -a ARC-Easy
 
 import argparse
 from functools import partial
-from contextlib import nullcontext
-
 import torch
 import torch.distributed as dist
 
@@ -185,7 +183,6 @@ if __name__ == "__main__":
     parser = argparse.ArgumentParser()
     parser.add_argument('-i', '--source', type=str, required=True, help="Source of the model: sft|rl")
     parser.add_argument('-a', '--task-name', type=str, default=None, help="Task name. Default = all tasks. Use | to split multiple tasks.")
-    parser.add_argument('-d', '--dtype', type=str, default='bfloat16', choices=['float32', 'bfloat16'])
     parser.add_argument('-t', '--temperature', type=float, default=0.0)
     parser.add_argument('-m', '--max-new-tokens', type=int, default=512)
     parser.add_argument('-n', '--num-samples', type=int, default=1)
@@ -199,8 +196,6 @@ if __name__ == "__main__":
 
     device_type = autodetect_device_type() if args.device_type == "" else args.device_type
     ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
-    ptdtype = torch.float32 if args.dtype == 'float32' else torch.bfloat16
-    autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=ptdtype) if device_type == "cuda" else nullcontext()
 
     model, tokenizer, meta = load_model(args.source, device, phase="eval", model_tag=args.model_tag, step=args.step)
     engine = Engine(model, tokenizer)
@@ -220,19 +215,18 @@ if __name__ == "__main__":
     # Run all the task evaluations sequentially
     results = {}
     for task_name in task_names:
-        with autocast_ctx:
-            acc = run_chat_eval(
-                task_name,
-                model, tokenizer, engine,
-                batch_size=args.batch_size,
-                num_samples=args.num_samples,
-                max_new_tokens=args.max_new_tokens,
-                temperature=args.temperature,
-                top_k=args.top_k,
-                max_problems=args.max_problems,
-            )
-            results[task_name] = acc
-            print0(f"{task_name} accuracy: {100 * acc:.2f}%")
+        acc = run_chat_eval(
+            task_name,
+            model, tokenizer, engine,
+            batch_size=args.batch_size,
+            num_samples=args.num_samples,
+            max_new_tokens=args.max_new_tokens,
+            temperature=args.temperature,
+            top_k=args.top_k,
+            max_problems=args.max_problems,
+        )
+        results[task_name] = acc
+        print0(f"{task_name} accuracy: {100 * acc:.2f}%")
 
     # Log to report
     from nanochat.report import get_report
diff --git a/scripts/chat_rl.py b/scripts/chat_rl.py
index 20a1a0a..cb2cb0e 100644
--- a/scripts/chat_rl.py
+++ b/scripts/chat_rl.py
@@ -22,8 +22,6 @@ import itertools
 import wandb
 import torch
 import torch.distributed as dist
-from contextlib import nullcontext
-
 from nanochat.common import compute_init, compute_cleanup, print0, get_base_dir, DummyWandb, autodetect_device_type
 from nanochat.checkpoint_manager import save_checkpoint, load_model
 from nanochat.engine import Engine
@@ -36,7 +34,6 @@ parser = argparse.ArgumentParser(description="Reinforcement learning on GSM8K")
 parser.add_argument("--run", type=str, default="dummy", help="wandb run name ('dummy' disables wandb logging)")
 # Runtime
 parser.add_argument("--device-type", type=str, default="", help="cuda|cpu|mps (empty = autodetect)")
-parser.add_argument("--dtype", type=str, default="bfloat16", help="float32|bfloat16")
 # Model loading
 parser.add_argument("--model-tag", type=str, default=None, help="model tag to load from")
 parser.add_argument("--model-step", type=int, default=None, help="model step to load from")
@@ -68,8 +65,6 @@ user_config = vars(args).copy()
 device_type = autodetect_device_type() if args.device_type == "" else args.device_type
 ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
 master_process = ddp_rank == 0 # this process will do logging, checkpointing etc.
-ptdtype = torch.float32 if args.dtype == 'float32' else torch.bfloat16
-autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=ptdtype) if device_type == "cuda" else nullcontext()
 
 # wandb logging init
 use_dummy_wandb = args.run == "dummy" or not master_process
@@ -108,15 +103,14 @@ def get_batch():
         num_sampling_steps = args.num_samples // args.device_batch_size # go sequentially to prevent OOMs
         for sampling_step in range(num_sampling_steps):
             seed = hash((step, example_idx, sampling_step)) & 0x7FFFFFFF # positive half of int32
-            with autocast_ctx:
-                generated_token_sequences_batch, masks_batch = engine.generate_batch(
-                    tokens,
-                    num_samples=args.device_batch_size,
-                    max_tokens=args.max_new_tokens,
-                    temperature=args.temperature,
-                    top_k=args.top_k,
-                    seed=seed, # must make sure to change the seed for each sampling step
-                )
+            generated_token_sequences_batch, masks_batch = engine.generate_batch(
+                tokens,
+                num_samples=args.device_batch_size,
+                max_tokens=args.max_new_tokens,
+                temperature=args.temperature,
+                top_k=args.top_k,
+                seed=seed, # must make sure to change the seed for each sampling step
+            )
             generated_token_sequences.extend(generated_token_sequences_batch)
             masks.extend(masks_batch)
 
@@ -231,9 +225,8 @@ for step in range(num_steps):
     if step % args.eval_every == 0:
         model.eval()
         passk = torch.zeros(args.device_batch_size, device=device) # pass@k for k=1..device_batch_size
-        with autocast_ctx:
-            records_iter = run_gsm8k_eval(val_task, tokenizer, engine, num_samples=args.device_batch_size, max_examples=args.eval_examples, temperature=1.0)
-            records = list(records_iter) # collect all records
+        records_iter = run_gsm8k_eval(val_task, tokenizer, engine, num_samples=args.device_batch_size, max_examples=args.eval_examples, temperature=1.0)
+        records = list(records_iter) # collect all records
         for k in range(1, args.device_batch_size + 1):
             passk[k - 1] = sum(any(o["is_correct"] for o in r["outcomes"][:k]) for r in records)
         num_records = torch.tensor(len(records), dtype=torch.long, device=device)
@@ -268,8 +261,7 @@ for step in range(num_steps):
             rewards = rewards_all[b0:b1]
             advantages = advantages_all[b0:b1]
             # Calculate log probabilities. Note that the loss calculates NLL = -logp, so we negate
-            with autocast_ctx:
-                logp = -model(inputs, targets, loss_reduction='none').view_as(inputs) # (B, T)
+            logp = -model(inputs, targets, loss_reduction='none').view_as(inputs) # (B, T)
             # Calculate the PG objective. Note that ignore_index=-1 ensures that invalid tokens have loss 0.
             pg_obj = (logp * advantages.unsqueeze(-1)).sum()
             # normalize by the number of valid tokens, number of passes, and examples_per_rank
diff --git a/scripts/chat_sft.py b/scripts/chat_sft.py
index cb9e078..c1adbb6 100644
--- a/scripts/chat_sft.py
+++ b/scripts/chat_sft.py
@@ -16,8 +16,7 @@ os.environ["PYTORCH_ALLOC_CONF"] = "expandable_segments:True"
 import time
 import wandb
 import torch
-from contextlib import nullcontext
-from nanochat.common import compute_init, compute_cleanup, print0, DummyWandb, get_base_dir, autodetect_device_type, get_peak_flops
+from nanochat.common import compute_init, compute_cleanup, print0, DummyWandb, get_base_dir, autodetect_device_type, get_peak_flops, COMPUTE_DTYPE, COMPUTE_DTYPE_REASON, is_ddp_initialized
 from nanochat.tokenizer import get_token_bytes
 from nanochat.checkpoint_manager import save_checkpoint, load_model, load_optimizer_state
 from nanochat.loss_eval import evaluate_bpb
@@ -75,7 +74,7 @@ user_config = vars(args).copy()
 device_type = autodetect_device_type() if args.device_type == "" else args.device_type
 ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
 master_process = ddp_rank == 0
-autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=torch.bfloat16) if device_type == "cuda" else nullcontext()
+print0(f"COMPUTE_DTYPE: {COMPUTE_DTYPE} ({COMPUTE_DTYPE_REASON})")
 synchronize = torch.cuda.synchronize if device_type == "cuda" else lambda: None
 get_max_memory = torch.cuda.max_memory_allocated if device_type == "cuda" else lambda: 0
 if device_type == "cuda":
@@ -151,6 +150,11 @@ if args.load_optimizer:
     else:
         print0("WARNING: optimizer checkpoint not found, starting with fresh optimizer (slightly worse)")
 
+# GradScaler for fp16 training (bf16/fp32 don't need it)
+scaler = torch.amp.GradScaler() if COMPUTE_DTYPE == torch.float16 else None
+if scaler is not None:
+    print0("GradScaler enabled for fp16 training")
+
 # Override the initial learning rate as a fraction of the base learning rate
 for group in optimizer.param_groups:
     group["lr"] = group["lr"] * args.init_lr_frac
@@ -344,8 +348,7 @@ while True:
         model.eval()
         val_loader = build_val_loader()
         eval_steps = args.eval_tokens // (args.device_batch_size * args.max_seq_len * ddp_world_size)
-        with autocast_ctx:
-            val_bpb = evaluate_bpb(model, val_loader, eval_steps, token_bytes)
+        val_bpb = evaluate_bpb(model, val_loader, eval_steps, token_bytes)
         print0(f"Step {step:05d} | Validation bpb: {val_bpb:.4f}")
         if val_bpb < min_val_bpb:
             min_val_bpb = val_bpb
@@ -373,9 +376,8 @@ while True:
         for task_name in all_tasks:
             limit = args.chatcore_max_cat if task_name in categorical_tasks else args.chatcore_max_sample
             max_problems = None if limit < 0 else limit  # -1 means no limit
-            with autocast_ctx:
-                acc = run_chat_eval(task_name, orig_model, tokenizer, engine,
-                                    batch_size=args.device_batch_size, max_problems=max_problems)
+            acc = run_chat_eval(task_name, orig_model, tokenizer, engine,
+                                batch_size=args.device_batch_size, max_problems=max_problems)
             task_results[task_name] = acc
             print0(f"  {task_name}: {100*acc:.2f}%")
         # Compute ChatCORE metrics (mean centered accuracy, ranges from 0=random to 1=perfect)
@@ -428,11 +430,13 @@ while True:
     synchronize()
     t0 = time.time()
     for micro_step in range(grad_accum_steps):
-        with autocast_ctx:
-            loss = model(x, y)
+        loss = model(x, y)
         train_loss = loss.detach() # for logging
         loss = loss / grad_accum_steps # each .backward() is a grad sum => normalize loss here
-        loss.backward()
+        if scaler is not None:
+            scaler.scale(loss).backward()
+        else:
+            loss.backward()
         x, y = next(train_loader) # prefetch the next batch while the GPU is busy with forward/backward
         progress = max(progress, approx_progress) # only increase progress monotonically
     # step the optimizer
@@ -442,7 +446,15 @@ while True:
         group["lr"] = group["initial_lr"] * lrm
         if group['kind'] == 'muon':
             group["momentum"] = muon_momentum
-    optimizer.step()
+    if scaler is not None:
+        scaler.unscale_(optimizer)
+        if is_ddp_initialized():
+            for v in scaler._found_inf_per_device(optimizer).values():
+                dist.all_reduce(v, op=dist.ReduceOp.MAX)
+        scaler.step(optimizer)
+        scaler.update()
+    else:
+        optimizer.step()
     model.zero_grad(set_to_none=True)
     synchronize()
     t1 = time.time()
diff --git a/scripts/chat_web.py b/scripts/chat_web.py
index 66d7806..ffaf7da 100644
--- a/scripts/chat_web.py
+++ b/scripts/chat_web.py
@@ -44,7 +44,6 @@ from fastapi.responses import StreamingResponse, HTMLResponse, FileResponse
 from pydantic import BaseModel
 from typing import List, Optional, AsyncGenerator
 from dataclasses import dataclass
-from contextlib import nullcontext
 from nanochat.common import compute_init, autodetect_device_type
 from nanochat.checkpoint_manager import load_model
 from nanochat.engine import Engine
@@ -69,7 +68,6 @@ parser.add_argument('-m', '--max-tokens', type=int, default=512, help='Default m
 parser.add_argument('-g', '--model-tag', type=str, default=None, help='Model tag to load')
 parser.add_argument('-s', '--step', type=int, default=None, help='Step to load')
 parser.add_argument('-p', '--port', type=int, default=8000, help='Port to run the server on')
-parser.add_argument('-d', '--dtype', type=str, default='bfloat16', choices=['float32', 'bfloat16'])
 parser.add_argument('--device-type', type=str, default='', choices=['cuda', 'cpu', 'mps'], help='Device type for evaluation: cuda|cpu|mps. empty => autodetect')
 parser.add_argument('--host', type=str, default='0.0.0.0', help='Host to bind the server to')
 args = parser.parse_args()
@@ -84,7 +82,6 @@ logger = logging.getLogger(__name__)
 
 device_type = autodetect_device_type() if args.device_type == "" else args.device_type
 ddp, ddp_rank, ddp_local_rank, ddp_world_size, device = compute_init(device_type)
-ptdtype = torch.float32 if args.dtype == 'float32' else torch.bfloat16
 
 @dataclass
 class Worker:
@@ -93,7 +90,6 @@ class Worker:
     device: torch.device
     engine: Engine
     tokenizer: object
-    autocast_ctx: torch.amp.autocast
 
 class WorkerPool:
     """Pool of workers, each with a model replica on a different GPU."""
@@ -125,14 +121,11 @@ class WorkerPool:
 
             model, tokenizer, _ = load_model(source, device, phase="eval", model_tag=model_tag, step=step)
             engine = Engine(model, tokenizer)
-            autocast_ctx = torch.amp.autocast(device_type=device_type, dtype=ptdtype) if device_type == "cuda" else nullcontext()
-
             worker = Worker(
                 gpu_id=gpu_id,
                 device=device,
                 engine=engine,
                 tokenizer=tokenizer,
-                autocast_ctx=autocast_ctx
             )
             self.workers.append(worker)
             await self.available_workers.put(worker)
@@ -279,34 +272,33 @@ async def generate_stream(
     # Track the last complete UTF-8 string (without replacement characters)
     last_clean_text = ""
 
-    with worker.autocast_ctx:
-        for token_column, token_masks in worker.engine.generate(
-            tokens,
-            num_samples=1,
-            max_tokens=max_new_tokens,
-            temperature=temperature,
-            top_k=top_k,
-            seed=random.randint(0, 2**31 - 1)
-        ):
-            token = token_column[0]
+    for token_column, token_masks in worker.engine.generate(
+        tokens,
+        num_samples=1,
+        max_tokens=max_new_tokens,
+        temperature=temperature,
+        top_k=top_k,
+        seed=random.randint(0, 2**31 - 1)
+    ):
+        token = token_column[0]
 
-            # Stopping criteria
-            if token == assistant_end or token == bos:
-                break
+        # Stopping criteria
+        if token == assistant_end or token == bos:
+            break
 
-            # Append the token to sequence
-            accumulated_tokens.append(token)
-            # Decode all accumulated tokens to get proper UTF-8 handling
-            # Note that decode is a quite efficient operation, basically table lookup and string concat
-            current_text = worker.tokenizer.decode(accumulated_tokens)
-            # Only emit text if it doesn't end with a replacement character
-            # This ensures we don't emit incomplete UTF-8 sequences
-            if not current_text.endswith('�'):
-                # Extract only the new text since last clean decode
-                new_text = current_text[len(last_clean_text):]
-                if new_text:  # Only yield if there's new content
-                    yield f"data: {json.dumps({'token': new_text, 'gpu': worker.gpu_id}, ensure_ascii=False)}\n\n"
-                    last_clean_text = current_text
+        # Append the token to sequence
+        accumulated_tokens.append(token)
+        # Decode all accumulated tokens to get proper UTF-8 handling
+        # Note that decode is a quite efficient operation, basically table lookup and string concat
+        current_text = worker.tokenizer.decode(accumulated_tokens)
+        # Only emit text if it doesn't end with a replacement character
+        # This ensures we don't emit incomplete UTF-8 sequences
+        if not current_text.endswith('�'):
+            # Extract only the new text since last clean decode
+            new_text = current_text[len(last_clean_text):]
+            if new_text:  # Only yield if there's new content
+                yield f"data: {json.dumps({'token': new_text, 'gpu': worker.gpu_id}, ensure_ascii=False)}\n\n"
+                last_clean_text = current_text
 
     yield f"data: {json.dumps({'done': True})}\n\n"
 
diff --git a/tests/test_attention_fallback.py b/tests/test_attention_fallback.py
index 9741c7f..3eddc72 100644
--- a/tests/test_attention_fallback.py
+++ b/tests/test_attention_fallback.py
@@ -21,8 +21,9 @@ from nanochat.engine import KVCache
 
 
 def set_impl(impl):
-    """Set the implementation override ('fa3', 'sdpa', or None for auto)."""
+    """Set the implementation override ('fa3', 'sdpa', or None for auto) and re-resolve USE_FA3."""
     fa_module._override_impl = impl
+    fa_module.USE_FA3 = fa_module._resolve_use_fa3()
 
 
 def run_both_impls(fn):
@@ -343,19 +344,19 @@ class TestOverrideMechanism:
     def test_override_fa3(self):
         """Test that override='fa3' uses FA3."""
         set_impl('fa3')
-        assert fa_module._use_fa3() == True
+        assert fa_module.USE_FA3 == True
         set_impl(None)
 
     def test_override_sdpa(self):
         """Test that override='sdpa' uses SDPA."""
         set_impl('sdpa')
-        assert fa_module._use_fa3() == False
+        assert fa_module.USE_FA3 == False
         set_impl(None)
 
     def test_override_auto(self):
         """Test that override=None uses auto-detection."""
         set_impl(None)
-        assert fa_module._use_fa3() == HAS_FA3
+        assert fa_module.USE_FA3 == HAS_FA3
 
 
 if __name__ == "__main__":