PRQ-KMeans: Projection Residual Quantization for Semantic ID Tokenization

Large-scale recommendation systems face "Memory Wall" bottlenecks due to massive, dense embedding tables. While generative retrieval uses discrete tokens for IDs, high-dimensional context still relies on inefficient dense formats. Inspired by computer vision data compression, we propose Dual-purpose Semantic IDs to achieve LLM-level I/O efficiency. Our methodology uses hierarchical quantization to condense continuous embeddings into discrete Semantic IDs performing two concurrent roles: (1) Collaborative Identity: modeling user-item interactions via learnable embedding table; and (2) Content Reconstruction: using a lightweight Semantic Decoder for on-the-fly embedding approximation. This approach replaces massive vector storage with on-demand reconstruction, reducing system overhead and data footprints. We demonstrate the efficacy of our framework through offline evaluations and successful online deployment in production-scale ranking and retrieval systems at a major video sharing platform, showing that discrete tokens are indeed all you need for highly efficient, content-rich recommendation.

Multimodal information can improve the accuracy of click-through rate (CTR) prediction and effectively alleviate item cold-start and long-tail problems. Recent studies commonly discretize pretrained multimodal embeddings into semantic identifiers (SIDs), allowing the model to learn task-specific semantic representations for recommendation. However, existing methods still provide limited gains due to two major limitations. First, codebook assignment fails to preserve semantic relevance and discards fine-grained continuous signals in the original embedding space. Second, the residual code paths are highly dependent on prefix codes, which limits the effective representational scalability of hierarchical identifiers. To address these issues, we propose PaletteID (PID), a prototype-based semantic identifier. Inspired by palette-based color composition, PID uses a compact set of representative prototype items as semantic anchors to bridge pretrained multimodal content space and recommendation models. Specifically, we first construct a prototype palette with Semantic Quality-Aware Determinantal Point Process (SQ-DPP), which jointly considers local content density and global semantic diversity. Then, for each target item, PID retrieves a sequence of semantically related prototypes and aggregates them into an informative PID representation, enabling rich and complementary semantic modeling. Extensive experiments on two public datasets demonstrate that PID consistently improves CTR prediction and yields larger gains for long-tail items. PID also produces more robust identifier assignments and provides more interpretable token semantics than existing residual SID methods.

User modeling in industrial recommender systems typically produces dense embeddings, which suffer from representational constraints inherent to fixed-dimensional vectors. An emerging alternative for discrete user representation -- using LLMs to generate text-based user tokens -- captures topical co-occurrences rather than deep sequential behavior dynamics and produces outputs that are difficult to ground to item attributes. Meanwhile, Semantic ID (SID) based item tokenization has proven effective for improving generalization in generative recommendation, yet discrete SID-based representations for users remain largely unexplored. We propose TokenMinds, an industrial-scale system that extends the PLUM framework from item retrieval to user modeling, generating both discrete SID-based user tokens and dense user embeddings via an encoder-decoder architecture adapted from pre-trained LLMs. This dual-output design provides the complementary benefits of discrete, semantically grounded user representations while maintaining compatibility with existing downstream models that rely on dense embeddings. Additionally, the shared SID vocabulary naturally extends to cross-scenario modeling: by unifying long-form and short-form video behaviors into a single model, we substantially reduce training and serving costs. We validate TokenMinds through extensive offline experiments and live launches on multiple YouTube surfaces, served on full user traffic (billions of users) via an asynchronous infrastructure that decouples representation generation from downstream scoring. Focusing on ranking as the primary downstream use case, our results confirm the practical viability of SID-based user tokens at industrial scale and demonstrate that tokens and dense embeddings provide complementary value across different production ranking systems.