A Novel Semantic Manifold Alignment Attack against Embedding-to-Embedding Obfuscation in Privacy-Preserving LLMs

Running large language models locally is often impractical, pushing inference on sensitive text to third-party providers. Split inference partially mitigates this by keeping tokens on the client and sending only hidden representations, but these representations can still be recovered via nearest-neighbor search against the public embedding table. We propose an orthogonal obfuscation procedure in which the client multiplies embeddings by a secret orthogonal matrix before transmission. To enable correct inference under arbitrary rotations, we introduce ConjFormer, a transformer variant that is exactly $\mathrm{O}(d)$-equivariant via a lightweight normalization change (scalar RMSNorm) together with blockwise orthogonal conjugation of all linear weights. As a result, the server performs the full forward pass entirely in the rotated basis and never observes unrotated hidden states. Experiments on GPT-2 and Llama 3.2 1B models fine-tuned on PubMed show that orthogonal obfuscation eliminates direct cosine nearest-neighbor inversion and reduces token recovery from over 35% top-10 to at most 1.3%, while increasing perplexity by only 0.4% after fine-tuning. These results indicate that enforcing symmetry at the architectural level can provide a practical defense for privacy-preserving LLM inference without noise injection or heavy cryptographic machinery.

Cloud-based language model services routinely process prompts containing sensitive information. Obfuscation-based defenses---including ObfusLM, SentinelLMs, TextObfuscator, and DPNR---mitigate this risk by transforming prompt representations before transmission, offering a lightweight alternative to cryptographic solutions. We show these defenses provide far less protection than previously believed. We present DeepInvert, a semi-supervised embedding inversion attack that recovers original tokens from obfuscated representations with higher accuracy than prior methods. The key insight is that unlabeled obfuscated embeddings retain exploitable semantic structure despite perturbation. DeepInvert combines supervised training on labeled shadow data with a novel unsupervised consistency objective over unlabeled target embeddings, alternating between the two via a mixed training pipeline. Defense-aware adaptations further extend the attack to diverse obfuscation mechanisms across encoder-based and autoregressive architectures. Experiments on nine defenses, five tasks, and four model architectures show that DeepInvert outperforms prior attacks on most defenses. Against ObfusLM, DeepInvert achieves 73.5% top-1 token recovery versus 26.2% for the previous best. Our results reveal a task-dependent tension: obfuscation schemes preserving enough signal for utility also retain sufficient structure for inversion, while schemes resisting inversion collapse utility. On simpler classification tasks, some DP-based defenses can maintain both. We call for a re-evaluation of this defense class.

The rapid development of large language models (LLMs) has driven the widespread adoption of cloud-based LLM inference services, while also bringing prominent privacy risks associated with the transmission and processing of private data in remote inference. For privacy-preserving LLM inference technologies to be practically applied in industrial scenarios, three core requirements must be satisfied simultaneously: (1) Accuracy and efficiency losses should be minimized to mitigate degradation in service experience. (2) The inference process can be run on large-scale clusters consist of heterogeneous legacy xPUs. (3) Compatibility with existing LLM infrastructures should be ensured to reuse their engineering optimizations. To the best of our knowledge, none of the existing privacy-preserving LLM inference methods satisfy all the above constraints while delivering meaningful privacy guarantees. In this paper, we propose AloePri, the first privacy-preserving LLM inference method for industrial applications. AloePri protects both the input and output data by covariant obfuscation, which jointly transforms data and model parameters to achieve better accuracy and privacy. We carefully design the transformation for each model component to ensure inference accuracy and data privacy while keeping full compatibility with existing infrastructures of Language Model as a Service. AloePri has been integrated into an industrial system for the evaluation of mainstream LLMs. The evaluation on Deepseek-V3.1-Terminus model (671B parameters) demonstrates that AloePri causes accuracy loss of 0.0%~3.5% and exhibits efficiency equivalent to that of plaintext inference. Meanwhile, AloePri successfully resists state-of-the-art attacks, with less than 5% of tokens recovered. To the best of our knowledge, AloePri is the first method to exhibit practical applicability to large-scale models in real-world systems.