No, it is DDS from Microsoft.
Much superior than this old shity stuff from S3!
Dunno what modern gpus can do with jpg or any other compressed, lossy format but as long as it is fine for oa, the developers should give it a try.
If it is just a "me too" which nobody uses, they should drop it (or if the code is already done, just implement and say "me too"
Anyway: i am neither a developer nor a graphic artist. if there are some benefits: implement it (even if my paint does not support dds iirc)!