The Compression Paradox in LLM Inference: Provider-Dependent Energy Effects of Prompt Compression

Prompt compression is often evaluated by input-token reduction, but its real deployment impact depends on how compression changes output length and total inference cost. We present a controlled replication and extension study of benchmark-dependent output dynamics under aggressive compression, covering 5,400 API calls across three benchmarks and multiple providers. To explain conflicting prior observations, we formalize instruction survival probability (Psi), a structural metric that captures whether task-critical prompt segments remain after truncation. Results show a strong benchmark effect: under r=0.3, DeepSeek exhibits severe output expansion on MBPP (56x, Psi approx 0.15) but substantially lower expansion on HumanEval (5x, Psi approx 0.72), while GPT-4o-mini is comparatively stable across benchmarks. This reconciles the apparent discrepancy between previously reported extreme explosion and lower replication effects by identifying prompt structure, not provider identity alone, as the primary moderator. We introduce the Compression Robustness Index (CRI) for cross-benchmark evaluation and show that single-benchmark assessments can produce misleading conclusions about compression safety and efficiency. To contextualize energy claims, we incorporate companion direct NVML measurements from rented RunPod GPUs and show that token savings can overstate joule savings. These findings motivate benchmark-diverse testing and structure-aware compression policies for reliable, energy-conscious LLM deployment.

With the wide adoption of language models for IR -- and specifically RAG systems -- the latency of the underlying LLM becomes a crucial bottleneck, since the long contexts of retrieved passages lead large prompts and therefore, compute increase. Prompt compression, which reduces the size of input prompts while aiming to preserve performance on downstream tasks, has established itself as a cost-effective and low-latency method for accelerating inference in large language models. However, its usefulness depends on whether the additional preprocessing time during generation is offset by faster decoding. We present the first systematic, large-scale study of this trade-off, with thousands of runs and 30,000 queries across several open-source LLMs and three GPU classes. Our evaluation separates compression overhead from decoding latency while tracking output quality and memory usage. LLMLingua achieves up to 18% end-to-end speed-ups, when prompt length, compression ratio, and hardware capacity are well matched, with response quality remaining statistically unchanged across summarization, code generation, and question answering tasks. Outside this operating window, however, the compression step dominates and cancels out the gains. We also show that effective compression can reduce memory usage enough to offload workloads from data center GPUs to commodity cards, with only a 0.3s increase in latency. Our open-source profiler predicts the latency break-even point for each model-hardware setup, providing practical guidance on when prompt compression delivers real-world benefits.

While it is known that quantization of large language models (LLMs) reduces memory usage via lower-bit weights, studies quantifying the resulting impact on energy usage and carbon intensity are scarce. We present the first unified evaluation of weight-only quantization strategies for LLM inference across varying input/output lengths and GPUs, highlighting differences in energy efficiency in addition to accuracy degradation and runtime. We study quantized inference on Llama 2 7B, Phi 3.5 Mini Instruct, OLMo 1B, Qwen 2.5 7B, and Qwen 2.5 14B across GLUE MNLI, MMLU, HumanEval, and GSM8K datasets, evaluating 10 post-training quantization (PTQ) strategies on NVIDIA H100, A6000, A100, and L4 GPUs. We identify a novel trend showing that quantization techniques tend to exhibit peak energy efficiency relative to full-precision baselines when inputs are sufficiently long and outputs are short. Furthermore, we show that quantization strategies become marginally more energy-efficient relative to full-precision models as batch sizes increase, though gains are modest. Notably, fused-kernel implementations such as EETQ int8 and Bitsandbytes int8 offer the highest energy savings, up to 4x compared to FP32 on short text generation, with negligible accuracy loss. Finally, we observe that energy usage closely tracks runtime on our evaluated benchmarks, indicating that, in practice, latency optimization can serve as a reliable proxy for reducing the environmental footprint of LLM services. We conclude with suggested directions for strategically selecting low-carbon quantization strategies based on specific inference requirements.