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FedFit addresses the communication bottleneck in federated learning by introducing vector-bank parameterization and blockwise quantization, achieving up to 100x compression while maintaining model performance on Qwen2.5. The method resolves the aggregation dilemma between accuracy and efficiency through an alternating optimization schedule that cycles between decoupled and joint updates. This approach offers a significant theoretical and practical advancement for deploying large language models in privacy-sensitive environments with limited bandwidth.
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FedFit: Federated Fine-Tuning of LLMs via Vector-Bank Parameterization and Quantization

arXiv2 min read

arXiv:2610.01537v1 Announce Type: new Abstract: Federated Learning (FL) enables privacy-preserving fine-tuning of Large Language Models (LLMs), yet the massive communication overhead remains a critical bottleneck. Furthermore, applying Low-Rank Adaptation (LoRA) in FL faces a fundamental "aggregation dilemma" between the accurate Sum-of-Products (SoP) and the communication-efficient Product-of-Sums (PoS) implementations. To tackle these challenges, we propose FedFit. First, to significantly reduce communication overhead, we introduce a disjoint shared vector-bank parameterization that reconstructs high-dimensional adapter matrices from two compact and disjoint global vector banks. Second, to address the aggregation dilemma, we devise an alternating optimization schedule. By cycling between decoupled single-bank updates (which allow for accurate aggregation) and joint updates corrected by a Residual Spectral Aggregation mechanism, we resolve the conflict between SoP and PoS. Additionally, we integrate blockwise quantization with client-side error feedback to further compress the transmitted vectors. Furthermore, we establish theoretical convergence guarantees for the proposed algorithm. Extensive experiments on Qwen2.5 models demonstrate that FedFit achieves perplexity performance comparable to standard federated LoRA methods, while providing compression ratios up to 100x higher.

Abstract:Federated Learning (FL) enables privacy-preserving fine-tuning of Large Language Models (LLMs), yet the massive communication overhead remains a critical bottleneck. Furthermore, applying Low-Rank Adaptation (LoRA) in FL faces a fundamental "aggregation dilemma" between the accurate Sum-of-Products (SoP) and the communication-efficient Product-of-Sums (PoS) implementations. To tackle these challenges, we propose FedFit. First, to significantly reduce communication overhead, we introduce a disjoint shared vector-bank parameterization that reconstructs high-dimensional adapter matrices from two compact and disjoint global vector banks. Second, to address the aggregation dilemma, we devise an alternating optimization schedule. By cycling between decoupled single-bank updates (which allow for accurate aggregation) and joint updates corrected by a Residual Spectral Aggregation mechanism, we resolve the conflict between SoP and PoS. Additionally, we integrate blockwise quantization with client-side error feedback to further compress the transmitted vectors. Furthermore, we establish theoretical convergence guarantees for the proposed algorithm. Extensive experiments on Qwen2.5 models demonstrate that FedFit achieves perplexity performance comparable to standard federated LoRA methods, while providing compression ratios up to 100x higher.

Machine Learning (cs.LG)

arXiv:2610.01537 [cs.LG]

(or arXiv:2610.01537v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2610.01537 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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