It is discovered that outlier dominance grows with model scale: full replacement at K=128 degrades GPT-2 small but catastrophically degrades Mistral-7B by +1,134,279%, while selective replacement at p=99% rescues both models to under +15%.
Abstract
We present \LegoLM{}, a structured weight-sharing compression framework for large language models grounded in a systematic study of why global weight sharing fails and how to fix it. We identify two distinct failure modes. Distributional mismatch: for vector blocks of dimension d<= 2, transformer layers with heterogeneous weight scales impose a scale-mismatch penalty that grows linearly with d and cannot be resolved by increasing K, producing perplexity in the millions.Outlier dominance: for scalar blocks, a fraction ~1/K of weights lies beyond the outermost Lloyd-Max decision threshold and cannot be represented by any centroid; their misrepresentation accumulates across layers, causing catastrophic quality loss. \LegoLM{} resolves both failure modes via three data-free adaptations: 1 scalar-block encoding to eliminate the $d$-linear mismatch component, 2 percentile-selective replacement that identifies and preserves outlier weights verbatim, and 3 boundary-layer protection for the first and last transformer blocks. Across GPT-2 small (124M) and Mistral-7B, \LegoLM{} achieves +0.03% PPL degradation at 4.41X compression on Mistral-7B - outperforming PTQ-8bit in both quality and compression ratio - and -0.02% at 2.67X. Downstream evaluation on LAMBADA and HellaSwag confirms that \LegoLM{} at K=64, p=99% preserves accuracy within noise at 5.12 X compression, exceeding PTQ-8bit's compression ratio while matching its accuracy. We further discover that outlier dominance grows with model scale: full replacement at K=128 degrades GPT-2 small by only +23% but catastrophically degrades Mistral-7B by +1,134,279%, while selective replacement at p=99% rescues both models to under +15%. A controlled ablation confirms that selective replacement is the dominant mechanism: adding it to per-layer K-means also yields near-lossless quality, matching \LegoLM{} within 0.02%.
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