Evaluating Compressed Memory: Dependence, Utility, and Content Benefit

Retrieval-augmented generation (RAG) improves language models with retrieved evidence, but processing many long passages is costly and can introduce distracting information. Soft compression addresses this challenge by encoding passages as compact sequences of continuous memory embeddings before generation. However, existing methods typically assign each retained passage an identical number of memory embeddings, irrespective of its query-specific relevance. To address this, we propose AdaMem, a relevance-guided soft-compression framework that maps learned passage-relevance estimates to a query-dependent allocation of a fixed memory-token budget. A shared query-conditioned compressor produces both continuous passage memories and relevance scores in a single pass; a deterministic allocation rule assigns more memory tokens to higher-scoring passages and can omit low-scoring ones. Across six open-domain QA benchmarks, AdaMem consistently outperforms OSCAR (the closely matched soft-compression baseline that uses uniform allocation) as well as other soft-compression methods at matched memory budgets. Under standard 16$\times$ compression, AdaMem improves sub-string match by up to 3.2 points (5.5%) over uniform allocation baseline, with an average relative gain of 3.4%; under aggressive 64$\times$ compression the average relative gain grows to 14.6%, with a maximum of 9.8 points (19.7%) on PopQA. AdaMem matches the answer quality of the uncompressed at up to 4$\times$ lower inference latency than full context baseline. AdaMem retains an efficiency profile comparable to the uniform-compression baseline, while achieving up to $4\times$ lower inference latency than full-context inference. Thus, relevance-guided memory allocation is particularly effective when retrieval pools are large and the available memory budget is tight.

Processing long documents with large language models (LLMs) is expensive: a single query over a 100K-token document can cost from tens of cents to over a dollar in API fees, depending on the model, and memory grows linearly with context length. We introduce BudgetMem, a training-free architecture that keeps only high-salience content under an explicit memory budget. Unlike token-level neural compressors such as LLMLingua, BudgetMem makes chunk-level keep-or-discard decisions from interpretable features: entity density, TF-IDF importance, position, numerical density, discourse markers, and question presence. Across four benchmarks, BudgetMem matches the uncompressed baseline on template-generated structured documents (F1 = 0.859 vs. 0.855) while discarding 70% of chunks. As a pre-retrieval filter on the same documents it outperforms LLMLingua-2 by a wide margin (0.859 vs. 0.554), because token-level compression destroys the phrasal structure that retrieval depends on; the advantage holds across model scale and family (Llama-3.2-3B, Qwen2.5-7B), under dense retrieval (0.918 vs. 0.530), and in LLMLingua-2's intended direct-feed mode (0.797 vs. 0.720). On real NLP research papers (Qasper), BudgetMem is competitive but not free, trailing the full baseline by 7.4% and LLMLingua-2 by 5.5% relative F1 at a 72% storage reduction. Removing discourse markers or numerical density hurts most, although TF-IDF alone scores as well on template documents. The pipeline needs no trained models or GPU for compression and runs on a $10/month Colab instance.

Long contexts enlarge key--value (KV) caches, increasing memory use and attention costs during generation. Compressing these caches must preserve information for unseen questions. We introduce Latent Compaction, which learns a compact document-specific cache through test-time training. We initialize cache entries using reconstruction importance, teacher attention, and key-space diversity. Training first fits attention outputs and log-normalizers to those of the full cache, with reconstruction-selected entries held fixed. It then jointly optimizes the entire cache through end-to-end distillation from the full-cache model. Model weights remain frozen throughout, and training uses only generic prompts about the document, without access to downstream questions or answers. Experiments on RULER, LongBench, and Phonebook Lookup demonstrate substantial gains over budget-matched compression baselines. On a RULER, for example, our method achieves 96.7% accuracy at 32$\times$ compression, compared with 40.0% for KVZip+. The method also transfers across model scales and families, with retrieval gains on both Qwen3 and MiniCPM5. These results show that treating the KV cache as a neural network and optimizing it with test-time training can preserve retrieval accuracy under aggressive compression. The code is released at https://www.github.com/THUNLP/latent-compaction