The classical information bottleneck (IB) measures the relevance of a representation
U of
X to a target
Y by
I(U;Y), which does not directly characterize the error of downstream decisions. For a binary hypothesis
Y inferred from many separately encoded observations, the optimal error exponent is the Chernoff information between the two conditional distributions of
U given
Y. We study the mutual information constrained Chernoff bottleneck, which seeks an encoder that maximizes this Chernoff information subject to a rate constraint
I(U;X)≤R. We show that its optimal value
C(R) increases strictly up to
R=H(V), where
V merges the symbols of
X with equal likelihood ratio, remains at the uncompressed exponent beyond, and, unlike the IB curve, need not be concave. We further show that
k+1 outputs suffice to attain
C(R), where
k is the cardinality of
V. We propose an alternating algorithm that updates the encoder via a generalized Blahut--Arimoto algorithm and the Chernoff parameter
s via a nonlinear equation, and prove that its iterates remain feasible, with nondecreasing and convergent Chernoff information. Comparing with the classical IB for
n samples, we show that, whenever the two objectives disagree, the IB encoder has the smaller equivocation
H(Y∣Un) at
n=1, whereas the Chernoff bottleneck has the smaller error probability and equivocation for all large
n. Numerical experiments confirm the theory, and on real topic-detection data from the 20 Newsgroups corpus, compressing each word to only
17% of its entropy retains
90% of the error exponent and nearly the accuracy of the uncompressed classifier.