OnlineQAT: On-Policy Distillation for Ultra-Low-Bit Large Language Models

Quantization-aware distillation (QAD) restores much of the short-form question-answering performance lost to sub-3-bit quantization, yet leaves mathematical and code reasoning substantially impaired. Long generations often degenerate into repetitive loops, exhausting the decoding budget without completing a solution. We trace this gap to quantization-amplified exposure bias: QAD trains on fixed corpus prefixes, while quantization-induced deviations compound along the model's own autoregressive trajectories. To address this mismatch, we introduce an on-policy distillation (OPD) stage that places teacher supervision where the quantized model actually goes. Starting from a QAD checkpoint, the student generates through the quantized forward path used at deployment and receives feedback from a frozen full-precision teacher on its own prefixes, combining dense token-level guidance with task-verifier rewards. Across four models at 2.79 and 1.88 effective bits, OPD raises average BF16 performance retention from 35% to 70% on MATH-500 and from 66% to 91% on HumanEval while preserving short-form performance, with reasoning gains substantially exceeding those of continued teacher-forced QAD in matched-budget comparisons. By coupling QAD's stable low-bit initialization with OPD's on-policy reasoning recovery, our framework provides a comprehensive sub-3-bit solution that preserves broad capabilities while restoring long-form reasoning.

Quantization-aware training (QAT) is essential for extremely low-bit large language models (LLMs). Current QAT methods are mainly based on scalar quantization (SQ), which enables efficient optimization but suffers from severe performance degradation at 2-bit precision. On the other hand, vector quantization (VQ) provides substantially higher representational capacity, but its discrete codebook lookup prevents end-to-end training. We propose LC-QAT, a 2-bit weight-only VQ-QAT framework that represents quantized weights via a learned affine mapping over discrete vectors, which yields a high-quality PTQ initialization and enables fully differentiable end-to-end optimization without explicit codebook lookup in the training forward pass. This strong post-training initialization makes LC-QAT highly data-efficient. Experiments across diverse LLMs demonstrate that LC-QAT consistently outperforms state-of-the-art QAT methods while using only 0.1%--10% of the training data. Our results establish LC-QAT as a practical and scalable solution for extreme low-bit model deployment. Codes are publicly available at https://github.com/AI9Stars/UniSVQ.

Model quantization has become essential for efficient large language model deployment, yet existing approaches involve clear trade-offs: methods such as GPTQ and AWQ achieve practical compression but are lossy, while lossless techniques preserve fidelity but typically do not accelerate inference. This paper explores the middle ground of statistically-lossless compression through three complementary notions of losslessness for quantized LLMs. First, task-lossless compression preserves zero-shot benchmark accuracy within natural sampling variance and remains achievable at aggressive bitwidths. Second, we formalize the stricter notion of distribution-lossless compression, requiring the quantized model's next-token distribution to be practically indistinguishable from the original, and propose the Expected Acceptance Rate (EAR), the maximum token-agreement probability under optimal coupling, as a directly interpretable fidelity metric (for example, EAR >= 0.99 indicates 99% agreement). Third, we prove a gamma-squared variance law showing that symmetric quantization inflates noise variance by gamma squared relative to asymmetric quantization, making asymmetry necessary for distribution-lossless fidelity but not for task-level preservation. Using SLQ, a layer-wise non-uniform method with asymmetric quantization and wide bitwidth search, we achieve task-lossless compression at well below 4 bits per parameter (as low as 3.3 bits depending on the model), distribution-lossless compression at 5 to 6 bits per parameter on average, and inference speedups of 1.7 to 3.6x relative to FP16 with optimized kernels. Source code is available at https://github.com/IST-DASLab/SLQ.