TerMeZO: Ternary Sparse Zeroth-Order Optimization for Fine-tuning BitNet Models at the Edge

Zeroth-order (ZO) optimization enables fine-tuning large language models when backpropagation is unavailable or memory-prohibitive, but existing methods often perturb full model weights or randomly constructed low-dimensional subspaces, yielding high-variance estimates and limited performance. We propose ZO-Act, an activation-informed ZO fine-tuning method that restricts perturbations to a fixed low-rank subspace derived from input activations. For each linear layer, ZO-Act computes a small activation basis once at initialization and optimizes only lightweight coefficient matrices using forward-only loss evaluations. This reduces the effective perturbation dimension, exposes explicit trainable variables compatible with momentum-based optimizers such as Adam, and naturally supports quantized LLM fine-tuning by keeping low-bit weights frozen. We analyze ZO-Act as zeroth-order optimization over a restricted coefficient space and show that perturbing the low-dimensional coefficients reduces both the variance-dependent convergence term and the finite-difference error of the ZO estimator, at the cost of a controlled subspace approximation bias that is mitigated by the low-rank structure of LLM activations and gradients. Experiments on Llama-3-8B, OPT-13B, and INT4 Llama-3-8B show consistent gains over strong ZO fine-tuning baselines across language understanding, question answering, and commonsense reasoning.

Zeroth-order (ZO) optimization is a memory-efficient alternative to backpropagation for fine-tuning large language models, but its deployment is limited by the high variance of gradient estimation. We propose GRZO, a Group-Relative Zeroth-Order optimizer that draws one pseudo-independent perturbation per mini-batch example and aggregates the per-example losses through group-relative normalization, raising the effective gradient-direction count from one to the batch size at no additional forward cost while preserving inference-level memory. We prove that GRZO is directionally unbiased with variance shrinking proportionally to the batch size, yielding a tighter nonconvex convergence bound than MeZO. Across RoBERTa-large, Llama3-8B, and OPT-13B over multiple tasks, GRZO improves average accuracy on Llama3-8B by $+3.0$ over MeZO at $23\%$ lower peak GPU memory; as a drop-in replacement for the MeZO core, it lifts sparse, low-rank, and quantized ZO variants by $+6.0$ on average.

Ternary Large Language Models (LLM) store every weight as one of three symbols $\{-1,0,+1\}$, so the cost of a ternary model is conventionally referenced to the information-theoretic $\log_2 3 \approx 1.585$ bits per weight. The prevailing deployment format packs five ternary weights into one byte (five-trit packing), and due to the power-of-two group sizes used in practice this rounds up to $1.625$ bits per weight. This effective storage bit-width treats the three symbols $\{-1,0,+1\}$ as equiprobable. We measure the actual symbol distribution of 29 ternary LLM models and find that zeros account for up to $51.5\%$ of all weights. Motivated by this finding, we introduce BITCOS, a simple distribution-adaptive layout comprised of a dense presence bitmap plus a compacted sign vector, and costs $2 - z$ bits per weight element given a zero density $z$ in the model's weights. BITCOS stores weights more compactly than the five-trit packing in 26 of the 29 tested models, and reaches $1.485$ bits per weight on the sparsest of them. BITCOS is amenable to efficient unpacking on modern processors and GPUs, and we present optimized unpacking sequences for AVX-512, AVX2 and Intel Xe2 GPUs. Measured against production state-of-the-art ternary matrix-vector multiplication kernels, at the zero densities real-world ternary models exhibit, the realized gain with our proposed layout is up to $1.28\times$. Finally, we illustrate end-to-end LLM inference results on 5 different platforms (client and server CPUs, integrated and discrete Xe2 GPUs) where decode throughput improves by up to $1.18\times$ on CPUs and $1.27\times$ on GPUs.