Possibly it's RAM rather than compute limited but still. You couldn't use that in a game. Existing techniques like PBD or verlet integration would be far more efficient.
Maybe on future devices with separate neural processor units this could be useful. But even then I bet those same chips could run standard real-time cloth algorithms really really fast too.
Edit: I downloaded their video and there's no movement at all, only still images. Maybe I misunderstood the purpose of the technique. But I re-read the article and it certainly seems like they're claiming to do full simulation, not just static scenes.
That scene with the sofa isn't even getting 60fps! It kinda feels like a disingenuous article after watching the video.