Quantization-Aware Healing: A Practical Recipe for Recovering Compressed, 4-Bit LLMs

Quantization-aware training (QAT) can recover much of the accuracy lost when large language models are compressed below four bits. Existing re- covery stages, however, are commonly optimized on fixed completions or teacher-generated answers, whereas the deployed quantized model condi- tions on prefixes generated by itself. Quantization errors can therefore move the model into states that are absent from offline recovery data. We introduce OnlineQAT, a two-stage framework that first obtains a usable low-bit initialization through block-wise QAT and then performs on-policy distillation (OPD) on student-generated responses. At each visited pre- fix, a frozen full-precision teacher provides a sampled reverse-KL training signal. On Qwen3-1.7B, OnlineQAT obtains the best average among the compared quantized methods: 57.28 at W3A16 and 32.52 at W2A16, im- proving over ReasoningQAT by 2.90 and 0.44 points, respectively. The results suggest that student-visited states provide a useful recovery signal beyond fixed-completion training, particularly at three bits.

Large language model (LLM) inference is increasingly moving toward lower precision to realize the throughput of hardware accelerators, but aggressive post-training quantization (PTQ) can degrade model quality. We present QATFactory, an open-source framework for deployment-aligned quantization-aware distillation (QAD) and reinforcement learning (QARL). QATFactory simulates deployment-time quantization while performing matrix multiplications in BF16, allowing models to adapt to quantization noise without requiring training hardware that natively supports the target format; for example, it supports NVFP4 training on H100 GPUs, which lack FP4 Tensor Cores. The framework supports NVFP4, MXFP4, and $\text{llama}.\text{cpp}$'s Q4_K format; dense and mixture-of-experts models; and both full-parameter and LoRA-based training. It exports checkpoints directly to vLLM and $\text{llama}.\text{cpp}$ without an additional lossy conversion step or added inference overhead. With QATFactory, we conduct extensive experiments on models ranging from 8B to 230B parameters and evaluate exported checkpoints in production inference engines. Across models and formats, QAD consistently improves deployed-model quality over strong PTQ baselines. On Qwen3.5-9B, QAD achieves average benchmark accuracies of 68.9% under NVFP4 and 66.0% under MXFP4, outperforming the best PTQ results of 65.4% and 56.4%, respectively. Through our experiments, we found that although both FP4 formats quantize weights and activations at deployment, the best training strategy is format-dependent: NVFP4 generally performs better when only weights are quantized during training, whereas MXFP4 benefits from quantizing both weights and activations. At a fixed training token budget, training on fewer 32K sequences improves average accuracy by 1.9 points over training on more 4K sequences.

Quantization-aware training (QAT) leverages lower-precision arithmetic to reduce the cost of LLM deployment, but aggressive quantization degrades final model performance. A common remedy is mixed-precision training, in which high precision is assigned to some of the layers to maintain performance while keeping the cost constrained. This approach then requires precision assignments for model layers during training. We provide a new approach, called Q-PACE, consisting of a second-order sensitivity model that predicts the loss increase as a sum of quantization noise MSE weighted by per-layer curvature coefficients. During training, we periodically re-compute these coefficients using perturbations across layers, and re-assign precision. Pretraining and supervised fine-tuning experiments on LLMs of up to 4B parameters show that Q-PACE consistently improves over existing mixed-precision training recipes, and achieves comparable loss at substantially lower total memory budgets. We further find that quantization sensitivity is highly predictable by depth and layer type, and its stability during training allows for infrequent, cheap recalibration.