SeedFlood: A Step Toward Scalable Decentralized Fine-Tuning of LLMs

Fine-tuning large language models (LLMs) in privacy-sensitive and resource-constrained environments remains challenging. Since training data are often distributed across multiple clients, decentralized fine-tuning offers a natural paradigm for collaborative adaptation without a central server. However, enabling full-parameter fine-tuning (FPFT) in this decentralized setting is difficult: FPFT provides strong adaptation capacity but incurs prohibitive resource consumption for billion-scale models. Existing decentralized LLM fine-tuning methods therefore mainly rely on parameter-efficient updates, which improve efficiency but may restrict downstream performance. Moreover, client data are typically non-IID, making decentralized optimization more vulnerable to client drift and unstable convergence. To address these challenges, we propose DECA, a resource-efficient decentralized FPFT framework for LLMs on non-IID data. DECA partitions model parameters into disjoint blocks and performs sequential block-wise Adam optimization, reducing resource consumption while preserving decentralized full-parameter adaptation. To stabilize training, DECA further introduces first- and second-order block-wise moment estimates with fresh local gradient statistics and consensus-derived discrepancy signals. We provide rigorous theoretical analysis and extensive experiments, showing that DECA achieves fast convergence, strong downstream performance, and significant resource efficiency.

Parameter-efficient fine-tuning methods such as LoRA have become a standard approach for adapting large foundation models. Adopting fine-tuning to distributed settings faces several challenges. Most existing distributed LoRA methods rely on centralized aggregation, and gossip-based decentralized LoRA requires repeated synchronization among multiple model copies. Both methods incur significant communication overhead and introduce errors due to simultaneous aggregation of multiple model updates. In this paper, we take a different perspective and propose a random-walk-based LoRA fine-tuning scheme. Instead of maintaining multiple model replicas, a single model token traverses the network and is updated sequentially using local fine-tuning objectives. This design eliminates the need for global synchronization, substantially reduces communication and computation costs, and avoids aggregation errors. We provide rigorous convergence guarantees for non-convex objectives under standard assumptions. Through empirical results on multiple NLP tasks and graph topologies, we show that the proposed method achieves competitive task performance with substantially less communication and computation than gossip-based LoRA.

Federated fine-tuning of large language models is commonly formulated as a parameter aggregation problem. However, even parameter-efficient methods require transmitting large collections of trainable weights, assume aligned architectures, and rely on white-box access to model parameters. As model sizes continue to grow and deployments become increasingly heterogeneous, these assumptions become progressively misaligned with practical constraints. We consider an alternative formulation in which collaboration is mediated through model behavior rather than parameters. Clients fine-tune local models on private data and exchange generated outputs on a shared, public prompt set. The server maps these outputs into a semantic representation space, forms a per-prompt semantic consensus, and returns pseudo-labels for further local fine-tuning. This formulation fundamentally changes the communication scaling of federated LLM fine-tuning. The amount of information exchanged depends only on the public prompt budget and the size of the communicated behaviors, independent of model size. As a consequence, the protocol naturally accommodates heterogeneous architectures and applies directly to open-ended text generation. We present a theoretical analysis and empirical results demonstrating that this approach can match strong federated fine-tuning baselines while substantially reducing communication by orders of magnitude (e.g., analytically by a factor of $1006$ for Llama3.1-405B), as well as reductions in runtime and energy consumption. These results suggest that, for generative foundation models, behavior-level consensus provides a more appropriate abstraction for federated adaptation than parameter aggregation.