Apertus LLM Family Expansion via Distillation and Quantization

Deploying large language models (LLMs) in resource-constrained environments is hindered by heavy computational and memory requirements. We present LBLLM, a lightweight binarization framework that achieves effective W(1+1)A4 quantization through a novel three-stage quantization strategy. The framework proceeds as follows: (1) initialize a high-quality quantized model via PTQ; (2) quantize binarized weights, group-wise bitmaps, and quantization parameters through layer-wise distillation while keeping activations in full precision; and (3) training learnable activation quantization factors to dynamically quantize activations to 4 bits. This decoupled design mitigates interference between weight and activation quantization, yielding greater training stability and better inference accuracy. LBLLM, trained only using 0.016B tokens with a single GPU, surpasses existing state-of-the-art binarization methods on W2A4 quantization settings across tasks of language modeling, commonsense QA, and language understanding. These results demonstrate that extreme low-bit quantization of LLMs can be both practical and highly effective without introducing any extra high-precision channels or rotational matrices commonly used in recent PTQ-based works, offering a promising path toward efficient LLM deployment in resource-limited situations.

Large Language Models (LLMs) achieve strong performance across a growing range of domains, yet their scale poses deployment challenges in applications where latency and cost constraints are critical. This paper derives empirical scaling laws for domain-specific LLM compression, quantifying how in-domain and general knowledge performance scale with dataset size, compression ratio, supervision format, and iterative pruning schedule. Using quantitative finance as our application domain, we compare logit-based and LoRA-based distillation under iterative structural pruning, introducing a blended chain-of-thought supervision loss that stabilizes KL-divergence distillation over reasoning traces. In-domain task quality degrades predictably under compression while general-knowledge benchmarks collapse well before the same point; supervision format is the key driver of this tradeoff, with chain-of-thought supervision actively recovering general knowledge that pruning erases. We release the headline dataset FinHeadlineMix, scaling law results, and practical recommendations to provide a reusable framework for domain-specific compression decisions.

There have been numerous attempts to distill quadratic attention-based large language models (LLMs) into sub-quadratic linearized architectures. However, despite extensive research, such distilled models often fail to match the performance of their teacher LLMs on various downstream tasks. We set out the goal of lossless distillation, which we define in terms of tolerance-corrected Win-and-Tie rates between student and teacher on sets of tasks. To this end, we introduce an effective distillation pipeline for xLSTM-based students. We propose an additional merging stage, where individually linearized experts are combined into a single model. We show the effectiveness of this pipeline by distilling base and instruction-tuned models from the Llama, Qwen, and Olmo families. In many settings, our xLSTM-based students recover most of the teacher's performance, and even exceed it on some downstream tasks. Our contributions are an important step towards more energy-efficient and cost-effective replacements for transformer-based LLMs.