Knowledge distillation (KD) transfers a single scalar prediction from a large foundation model (FM) to compact vertical models (VMs), suffering from diminishing transfer ratio -- the fraction of FM improvement captured by the VM -- as a single scalar cannot convey the rich intermediate knowledge that larger FMs learn. To address this bottleneck, we propose LoopFM (Learning frOm HistOrical RePresentations of FM), a framework that opens a high-bandwidth transfer channel by structuring FM intermediate embeddings as input features (e.g., user history sequence) for downstream VMs, without requiring real-time FM inference at serving and architectural coupling between FM and VM. We provide a theoretical framework for LoopFM with a gain decomposition and transfer-ratio analysis. On three public benchmarks, LoopFM demonstrates strong AUC improvements (e.g., 6%+ on TaobaoAd) and complementary knowledge transfer capability with KD. On industrial-scale systems (billions of examples, trillion-parameter FMs), LoopFM approximately doubles the knowledge transfer ratio on top of KD, delivering a +0.5% conversion improvement in the first half after its initial launch, and +1.03% and +1.22% conversion improvement from two individual launches in the subsequent half.
Small language models are often the only option for deployment under tight latency, cost, and on-premises constraints, but they are rarely trained from scratch: a compressed model is usually recovered through knowledge distillation (KD). This recovery step largely decides the final quality, yet it is expensive. We present a practitioner's study of how to make distillation training efficient, organised around two systems contributions. First, we show that offline KD (caching the teacher's top-K logits once and training the student against the cache) matches online distillation at near-identical training loss while removing the teacher from memory, running about 29% faster per iteration, and reaching up to 41% higher throughput on a single H200 GPU. Second, we introduce a \emph{fused, chunked KL loss} that never materialises the full vocabulary-sized logit tensor, making peak memory linear in the sequence length. This removes the memory spike that otherwise caps context length and lets us train at four times the context (32{,}768 tokens) on a single GPU. A separate output-head-only toy benchmark isolates the loss kernel and confirms its memory and iteration-rate scaling from 4K to 256K tokens. Together these make large-scale healing and hundreds of ablations affordable. We also report supporting ablations on loss design and sequence packing. We release our chunked-loss implementation: https://github.com/CompactifAI/Full-Chunked-KL-Loss.
Bakbergen Ryskulov, Iker García-Ferrero, David Montero +5
Tabular Foundation Models (TFMs) have demonstrated strong empirical performance as black-box inference engines through in-context learning. However, their use in transfer learning is limited by two obstacles: strict context-size constraints and sensitivity to distribution shifts between source and target tasks. Directly pooling heterogeneous source data can therefore lead to negative transfer. To address these challenges, we propose Context-Constrained Transfer Learning via ANchoring and DIstillation (TL-ANDI), a posterior-aware distillation framework for TFMs. TL-ANDI constructs a compact source context by solving a budget-constrained optimal transport problem whose cost jointly measures target covariate coverage and posterior compatibility. The selected anchor samples are then equipped with locally distilled labels and combined with a residual calibration step using target data.
Foundation model(FM) for recommendation has shown strong ability to model long-horizon sequential user behavior. In practice, a single pretrained foundation model is often adapted to diverse downstream serving surfaces through Supervised Fine-Tuning(SFT). However, optimizing task-specific objectives such as clicks or likes does not necessarily align the serving policy with the business metrics that determine recommendation quality. We propose a three-phase progressive post-training framework that explicitly separates downstream adaptation from business-metric alignment. The adaptation stage is decomposed into Linear Probing(LP) and Full Fine-Tuning(FFT): LP first stabilizes randomly initialized downstream heads within a frozen pretrained representation space, and FFT then jointly specializes the full model for the target task. On top of this stabilized policy, Reinforcement Fine-Tuning(RFT) aligns the model with practical business objectives using a learned reward model. Rather than directly optimizing the serving policy on sparse business targets, we train the policy on dense implicit feedback and use business-metric supervision only for reward modeling. Offline experiments show that the progressive LP-FFT-RFT framework outperforms single-phase alternatives, and that reward-based alignment yields a stronger serving policy than directly using the reward model itself for ranking. Large-scale online A/B tests further show that the proposed framework improves production recommendation quality over a conventional non-foundation baseline. A reference implementation is available at https://github.com/webtoon/rec-fm-progressive-alignment