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Oct 20

How Small Can You Go? LoRA Fine-Tuning 270M-8B Models for Merchant Information Extraction in Financial Transactions

Financial transaction processing requires extracting structured merchant information from noisy, abbreviated bank transaction strings at scale. Our current production system, a LoRA-fine-tuned LLaMA 3.1-8B, achieves 96.95% F1 on this task, but deploying 8-billion-parameter models imposes prohibitive memory, latency, and cost constraints. To identify more efficient alternatives, we conduct a deployment-focused study of 24 model variants spanning four model families: Gemma 3 (270M, 1B, 4B), Qwen 3.5 (0.8B, 2B, 4B), Aya (3.35B), and LLaMA 3.1-8B, systematically evaluating accuracy, inference throughput, training cost, and hardware behavior to assess production suitability. Our findings show that: (1) reproducing the LLaMA 3.1-8B fine-tune with a LoRA rank of 8 achieves 96.75% F1, only 0.20 points below the rank-32 baseline; (2) Qwen 3.5 4B with JSON-only prompting reaches 96.60% F1, within 0.35 points of the 8B baseline while using roughly half the parameters; (3) the 0.8B Qwen 3.5 model achieves 94.75% F1, matching models 2.5-4x larger and offering an attractive latency-accuracy trade-off; (4) chain-of-thought fine-tuning generally improves F1 by 0.3-1.8 points across most models, although Qwen 3.5 4B performs best with direct JSON-only prompting; and (5) Qwen 3.5 Think and Nothink training templates produce nearly identical results (F1 differences <0.004), indicating that explicit reasoning supervision is unnecessary for structured extraction tasks. We further deploy all 14 fine-tuned sub-8B models as Databricks Model Serving endpoints and observe that benchmark performance transfers reliably to production, with an average F1 change of only 0.8 points. Aya 3.35B, based on the Cohere2 architecture, is the sole exception, exhibiting a 3-5 point decline under serving conditions. Based on these results, we provide deployment recommendations across accuracy and latency requirements, ...

  • 4 authors
·
Jun 5

Post-Training Quantization of OpenPangu Models for Efficient Deployment on Atlas A2

Huawei's openPangu-Embedded-1B and openPangu-Embedded-7B are variants of the openPangu large language model, designed for efficient deployment on Ascend NPUs. The 7B variant supports three distinct Chain-of-Thought (CoT) reasoning paradigms, namely slow_think, auto_think, and no_think, while the 1B variant operates exclusively in the no_think mode, which employs condensed reasoning for higher efficiency. Although CoT reasoning enhances capability, the generation of extended reasoning traces introduces substantial memory and latency overheads, posing challenges for practical deployment on Ascend NPUs. This paper addresses these computational constraints by leveraging low-bit quantization, which transforms FP16 computations into more efficient integer arithmetic. We introduce a unified low-bit inference framework, supporting INT8 (W8A8) and W4A8 quantization, specifically optimized for openPangu-Embedded models on the Atlas A2. Our comprehensive evaluation on code generation benchmarks (HumanEval and MBPP) demonstrates the efficacy of this approach. INT8 quantization consistently preserves over 90\% of the FP16 baseline accuracy and achieves a 1.5x prefill speedup on the Atlas A2. Furthermore, W4A8 quantization significantly reduces memory consumption, albeit with a moderate trade-off in accuracy. These findings collectively indicate that low-bit quantization effectively facilitates efficient CoT reasoning on Ascend NPUs, maintaining high model fidelity.

  • 5 authors
·
Jan 7

The Thinking Leakage in Reinforcement Learning for LLMs

Hybrid reasoning models such as the Qwen3 series switch between a THINK mode and a NO-THINK mode through a few chat-template tokens. A popular recipe trains such models with reinforcement learning in NO-THINK mode and reports improved reasoning performance. We provide evidence that much of this gain can be explained by thinking leakage: the gain comes largely from partially reactivating the reasoning abilities of the original model's THINK mode instead of learning enhanced reasoning behavior. We train Qwen3-1.7B, 4B, and 8B with GRPO in NO-THINK mode. As accuracy improves, responses become longer and more reflective, are increasingly judged by the original model to resemble its own thinking, and the model's internal activations shift toward its THINK mode. We then investigate at the level of weights, activations, and attention heads: scaling the RL update further elicits THINK-mode behavior and approaches THINK-mode accuracy but does not exceed it; in Qwen3-8B, replacing a low-dimensional THINK-related activation subspace of the RL-trained model with its original-model value removes most of the RL gain, and the reverse exchange transfers a considerable fraction of the gain to the original model; and the RL-induced shift passes through the attention heads that read the empty think block. We further identify a possible mechanism in the GRPO training signal: responses favored by the advantage-weighted update are more THINK-like, and a gradient step computed from this signal moves the model toward its THINK state. Thus, gains in NO-THINK mode can largely reflect reactivation of reasoning abilities already present in the original model.

IndustryLLM: Failure-Driven LLM Training for Industrial Procurement

Industrial procurement requires language models to bridge informal buyer jargon, sparse marketplace attributes, and authoritative engineering standards under strict safety tolerances. We present IndustryLLM, an open-weight industrial language model trained from Qwen3.5-35B-A3B-Base (35B total parameters with ~3B activated per token, with the vision encoder frozen). Rather than relying on generic text scaling, we introduce a failure-driven adaptation recipe spanning continued pre-training (CPT) and supervised fine-tuning (SFT). CPT leverages a curated ~100B-token corpus integrating 5B tokens of national standards (e.g., GB/T) and technical archives, 10B tokens of de-identified real-world industrial transaction and inquiry records, and 60B tokens of general replay. To overcome register mismatch and factual brittleness, we systematically reconstruct an estimated 20B-token domain subset via multi-register rewriting across 10 genres and 8 writing styles, confidence-routed minimal factual editing, and error-targeted QA synthesis (resolving colloquial typos like '42-luo-mu' -> 42CrMo, expanding ambiguous codes like '16674' -> GB/T 16674, and clarifying conflicting dimensional specs). For downstream deployment, we formalize an evidence-gated constraint-evaluation interface enforcing three-valued logic where unverified product evidence remains unknown rather than satisfied. Offline evaluations demonstrate consistent gains on procurement-query structuring (+2.97 percentage points in exact match, 95% CI [2.11, 3.86] in No-Think mode), while randomized online A/B experiments in production yield substantial improvements (+4.25% GMV, +8.3% satisfied inquiries) alongside a latency reduction from 6-7 s to 1.5 s. Model weights and configs are released at https://huggingface.co/alibaba-multimodal-industrial-ai/IndustryLLM.