Jinuk Kim, Rajarshi Saha, Muhammed Fatih Balin, Youngsuk Park
Preprint
A scaling law for quantized pretraining that adds persistent forward/backward optimization-error terms predicts held-out loss under mixed-precision FP4/FP8 configurations substantially more accurately than prior laws, and implies optimal precision should rise with compute budget.
Ablation of FP4 recipe components (forward vs backward) on a 430M-parameter Qwen3 model trained on 12.8B tokens; a scaling-law fit grid spanning BF16, MXFP8, and several NVFP4 schemes with models up to 0.9B parameters and up to 35.8B tokens; validation on published Quartet Llama-style results up to 800 tokens per parameter; plus layer-wise mixed-precision experiments and compute-optimal allocation solves.
Up to 11x lower MSE in held-out loss prediction versus existing scaling laws. Component ablation: forward quantization costs +0.94-1.22% loss vs backward-only +0.32-0.72%; the best full-FP4 recipe (Quartet II) still trails BF16 by roughly +0.36% at 430M/12.8B scale. All results are at sub-billion scale; extrapolation to frontier sizes is asserted by the law, not demonstrated.
Authors concede even the best FP4 configuration leaves a noticeable gap to BF16, motivating mixed precision rather than uniform 4-bit. Unstated: all Qwen3 experiments are tiny relative to frontier runs; the persistent-error term is validated only in this regime; compute-optimal conclusions depend on assumed hardware speedups (NVFP4 vs BF16 speedup is a free parameter in the figures); convex-theory sketch does not strictly apply to LLMs. This is a preprint with internship-affiliated authors.
The 11x MSE improvement is on small-model held-out splits where scaling-law fitting is easy to overfit; grid coverage is narrow (one model family plus one published external grid); the headline 'optimal precision rises with compute' conclusion is an extrapolation driven by assumed speedup constants rather than measured frontier-scale training; no release of code confirmation is stated.
If it holds at scale, low-precision mixed formats could cut pretraining compute cost per unit capability, feeding the falling-cost side of training economics; but the paper itself shows 4-bit-everywhere is not yet loss-free, so near-term savings are incremental, not a step change.
Technical Capability: Provides a sharper quantitative tool for deciding forward/backward and per-layer precision, directly relevant to how much cheaper frontier-scale pretraining can get.
Market & Valuation: Materially better quantized-training economics would shift the compute-cost lines in lab unit-economics and hyperscaler capex-efficiency arguments, though only as a forecast input at this stage.