diff --git a/float8_experimental/float8_dynamic_utils.py b/float8_experimental/float8_dynamic_utils.py
index ecd64fd..3cdbaf9 100644
--- a/float8_experimental/float8_dynamic_utils.py
+++ b/float8_experimental/float8_dynamic_utils.py
@@ -19,12 +19,7 @@
     tensor_already_casted_to_fp8,
     to_fp8_no_autograd,
 )
-from float8_experimental.float8_utils import (
-    amax_to_scale,
-    e4m3_dtype,
-    e5m2_dtype,
-    tensor_to_scale,
-)
+from float8_experimental.float8_utils import e4m3_dtype, e5m2_dtype, tensor_to_scale
 from torch._prims_common import suggest_memory_format
 
 
@@ -91,7 +86,7 @@ def __new__(
         cls,
         tensor: torch.Tensor,
         mm_config: ScaledMMConfig,
-        amax: Optional[torch.Tensor] = None,
+        precomputed_scale: Optional[torch.Tensor] = None,
     ):
         return torch.Tensor._make_wrapper_subclass(
             cls,
@@ -110,14 +105,14 @@ def __init__(
         self,
         tensor: torch.Tensor,
         mm_config: ScaledMMConfig,
-        amax: Optional[torch.Tensor] = None,
+        precomputed_scale: Optional[torch.Tensor] = None,
     ):
         self._tensor = tensor
         self._mm_config = mm_config
         # for dynamic scaling
-        # `precompute_float8_amax_for_fsdp` calculates amax
+        # `precompute_float8_scale_for_fsdp` calculates scales
         # for all float8 parameters after optimizer step
-        self._precomputed_amax = amax
+        self._precomputed_scale = precomputed_scale
 
     @classmethod
     def __torch_dispatch__(cls, func, types, args, kwargs=None):
@@ -146,8 +141,8 @@ def unwrap(t):
         )
 
     def __tensor_flatten__(self):
-        if self._precomputed_amax:
-            return ["_tensor", "_precomputed_amax"], self._mm_config
+        if self._precomputed_scale:
+            return ["_tensor", "_precomputed_scale"], self._mm_config
         else:
             return ["_tensor"], self._mm_config
 
@@ -157,21 +152,19 @@ def __tensor_unflatten__(inner_tensors, flatten_spec, outer_size, outer_stride):
         return WeightWithDynamicFloat8CastTensor(
             inner_tensors["_tensor"],
             mm_config,
-            getattr(inner_tensors, "_precomputed_amax", None),
+            getattr(inner_tensors, "_precomputed_scale", None),
         )
 
     def __repr__(self):
         return f"WeightWithDynamicFloat8CastTensor(tensor={self._tensor}, mm_config={self._mm_config})"
 
     def fsdp_pre_all_gather(self, mesh):
-        if self._precomputed_amax is not None:
-            scale = amax_to_scale(
-                self._precomputed_amax,
-                torch.float8_e4m3fn,
-                self._precomputed_amax.dtype,
-            )
+        if self._precomputed_scale is not None:
             float8_tensor = Float8Tensor.to_float8(
-                self._tensor, scale, torch.float8_e4m3fn, mm_config=self._mm_config
+                self._tensor,
+                self._precomputed_scale,
+                torch.float8_e4m3fn,
+                mm_config=self._mm_config,
             )
         else:
             float8_tensor = cast_to_float8_e4m3_dynamic(
diff --git a/float8_experimental/float8_utils.py b/float8_experimental/float8_utils.py
index ad5ffe1..2be568e 100644
--- a/float8_experimental/float8_utils.py
+++ b/float8_experimental/float8_utils.py
@@ -34,9 +34,7 @@
 
 @torch.no_grad()
 def amax_to_scale(
-    amax: torch.Tensor,
-    float8_dtype: torch.dtype,
-    orig_dtype: torch.dtype,
+    amax: torch.Tensor, float8_dtype: torch.dtype, orig_dtype: torch.dtype
 ):
     """Converts the amax value of a tensor to the fp8 scale.
     Args:
diff --git a/float8_experimental/fsdp_utils.py b/float8_experimental/fsdp_utils.py
index bb21e88..e06ec66 100644
--- a/float8_experimental/fsdp_utils.py
+++ b/float8_experimental/fsdp_utils.py
@@ -10,14 +10,14 @@
 from float8_experimental.float8_utils import EPS
 
 
-def precompute_float8_amax_for_fsdp(module: nn.Module) -> None:
+def precompute_float8_scale_for_fsdp(module: nn.Module) -> None:
     """
-    Calculate amax for all float8 parameters after optimizer step
+    Calculate scale for all float8 parameters after optimizer step
     It performs a single all-reduce instead of many all-reduces for each parameter
     Exmaple usage:
         model(input).sum().backward()
         optim.step()
-        precompute_float8_amax_for_fsdp(model)
+        precompute_float8_scale_for_fsdp(model)
     """
     from torch.distributed._tensor import DTensor
 
@@ -38,20 +38,23 @@ def precompute_float8_amax_for_fsdp(module: nn.Module) -> None:
     ]
     weights: List[DTensor] = [float8_linear.weight for float8_linear in float8_linears]
 
-    def compute_amaxes(weights: List[DTensor]):
+    def compute_scales(weights: List[DTensor]):
         # inf-norm is equivalent to max(abs(w))
         max_weights = torch._foreach_norm(weights, ord=math.inf)  # Partial
         amax_tensor = torch.vstack(max_weights)  # Partial
         # clamp is dispatched through DTensor
         # it will issue a single all-reduce
         amax_tensor = torch.clamp(amax_tensor, EPS)  # Replicate
-        amaxes = torch.split(amax_tensor, 1)  # Replicate
-        return amaxes
+        scale_tensor = torch.finfo(torch.float8_e4m3fn).max / amax_tensor  # Replicate
+        if amax_tensor.dtype is torch.float16:
+            scale_tensor = torch.clamp(scale_tensor, max=torch.finfo(torch.float16).max)
+        scales = torch.split(scale_tensor, 1)  # Replicate
+        return scales
 
     if weights:
-        amaxes = compute_amaxes(weights)
-        for amax, float8_linear in zip(amaxes, float8_linears):
-            float8_linear.weight._local_tensor._precomputed_amax = amax._local_tensor
+        scales = compute_scales(weights)
+        for scale, float8_linear in zip(scales, float8_linears):
+            float8_linear.weight._local_tensor._precomputed_scale = scale._local_tensor
     else:
         warnings.warn(
             "Calling precompute_float8_weights without any weights using FSDP fp8 all-gather!"