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GLOSSARY · Q

What Is Quantization?

DEFINITION

Quantization is a technique that stores an AI model’s parameters with fewer bits, for example 8-bit or 4-bit numbers instead of 16-bit ones. This shrinks the memory a model needs and usually speeds up inference, at the cost of a small loss in accuracy that grows as precision drops. Common formats include FP8, INT8, INT4 and 4-bit floating-point formats such as NVFP4 and MXFP4.

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Why Quantization Matters

  • Memory: Cuts GPU memory needs in half at 8-bit and by about three-quarters at 4-bit.
  • Cost: Lets larger models run on fewer or smaller GPUs.
  • Speed: Moves less data for every token, which often increases tokens per second.
  • Quality: 8-bit formats usually stay very close to full-precision results.

Use Cases

  • Running large open-weight models on-premise within limited GPU memory.
  • Serving more concurrent users from the same hardware.
  • Deploying models on workstations and edge devices.
  • QLoRA fine-tuning, which trains small adapters on top of a 4-bit base model.
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