Being exclusive to Nvidia GPUs doesn't sound like a good idea. What makes it rely on CUDA anyway? It's cool that it's using Wine though. From these cloud services like Amazon's Luna or Geforce Now, none are running Linux, so this is interesting. No idea why Stadia couldn't do the same and tried to reinvent the wheel with Windows ABI translation at some point before it shut down.
I'd guess it does the video encoding on the GPU before it goes back to the PC. GeForce Experience recording does this as well I believe.
For video they can rely on VAAPI or Vulkan video (the latter might be behind on AV1 encoding options though) which can work on any GPU with video acceleration hardware.