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This research introduces LACE-SVD, a novel framework for compressing large language models by addressing the accumulation of errors in residual streams often overlooked by standard SVD methods. By integrating loss-aware rank budget allocation with cumulative error correction, the technique significantly improves perplexity scores on benchmark datasets like WikiText-2 even at high compression ratios. The work advances practical LLM deployment strategies by offering a hardware-agnostic approach that balances memory efficiency with model fidelity without requiring specific architectural changes.
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LACE-SVD: Loss-Aware SVD with Cumulative Error Correction for LLM Compression

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arXiv:2607.03057v2 Announce Type: replace Abstract: The rapid growth in the parameter scale of large language models (LLMs) has created a strong demand for efficient compression techniques. As a hardware-agnostic and highly compatible approach, low-rank compression has been widely adopted to reduce both memory footprint and computational cost. However, existing SVD-based methods are still largely driven by local reconstruction objectives, overlooking two critical limitations: rank budgets are often allocated without explicitly considering layer-wise loss sensitivity, and local approximation errors can propagate and accumulate through the residual stream, leading to amplified global deviations from the original model. To address these issues, we propose LACE-SVD, a Loss-Aware SVD framework with Cumulative Error correction for LLM compression. LACE-SVD first estimates the calibration negative-log-likelihood increase induced by candidate layer-wise compression ratios and solves a budget-constrained allocation problem to assign rank budgets. It then refines the compressed model with closed-form local updates and introduces a propagation-aware correction for residual-stream output modules, reducing layer-output discrepancy as a proxy for cumulative error propagation. Experimental results demonstrate that at a high compression ratio (0.6), the WikiText-2 PPL of our method on LLaMA-7B (32.57) is significantly better than that of Dobi-SVD (46.18).

Abstract:The rapid growth in the parameter scale of large language models (LLMs) has created a strong demand for efficient compression techniques. As a hardware-agnostic and highly compatible approach, low-rank compression has been widely adopted to reduce both memory footprint and computational cost. However, existing SVD-based methods are still largely driven by local reconstruction objectives, overlooking two critical limitations: rank budgets are often allocated without explicitly considering layer-wise loss sensitivity, and local approximation errors can propagate and accumulate through the residual stream, leading to amplified global deviations from the original model. To address these issues, we propose LACE-SVD, a Loss-Aware SVD framework with Cumulative Error correction for LLM compression. LACE-SVD first estimates the calibration negative-log-likelihood increase induced by candidate layer-wise compression ratios and solves a budget-constrained allocation problem to assign rank budgets. It then refines the compressed model with closed-form local updates and introduces a propagation-aware correction for residual-stream output modules, reducing layer-output discrepancy as a proxy for cumulative error propagation. Experimental results demonstrate that at a high compression ratio (0.6), the WikiText-2 PPL of our method on LLaMA-7B (32.57) is significantly better than that of Dobi-SVD (46.18).

Machine Learning (cs.LG); Artificial Intelligence (cs.AI)

arXiv:2607.03057 [cs.LG]

(or arXiv:2607.03057v2 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2607.03057 Focus to learn more arXiv-issued DOI via DataCite

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