Blog ยท AI Engineering

Quantisation Explained: Why Smaller Models Often Run Better

2026-09-23ยท8 min readยทMD ABU SAYEED
In short: Quantisation compresses model weights to lower precision, letting you run capable LLMs on consumer hardware with 2โ€“4ร— speedups and 50โ€“75% less VRAM.
Server hardware in a rack
Server hardware in a rack

What Is Quantisation?

Quantisation is the process of reducing the numerical precision of a model's weights and activations. Most models ship in FP16 (16-bit floating point) or BF16. Quantisation converts those weights to INT8 (8-bit integers) or INT4 (4-bit integers). The arithmetic shifts from floating-point multiplication to integer math, which is far cheaper on modern GPUs and CPUs.

The trade-off is tiny: a well-quantised 4-bit model typically retains 95โ€“99% of the original quality on benchmarks, while using roughly one-quarter of the VRAM.

Why It Matters for Local Inference

VRAM is the bottleneck for running large language models locally. A 7B-parameter model in FP16 needs about 14 GB of VRAM just for weights. The same model in 4-bit (GGUF Q4_K_M) needs ~4.5 GB. That difference determines whether a model fits on a 24 GB card, a 16 GB card, or a 12 GB laptop GPU.

Quantisation also speeds up inference. Integer matrix multiplication kernels are heavily optimised on NVIDIA Tensor Cores and Apple Neural Engine. You often see 2โ€“4ร— tokens-per-second gains over FP16, especially when the model is memory-bound.

Common Quantisation Formats

Choosing the Right Quant Level

For most users, Q4_K_M is the sweet spot: ~4.5 GB for a 7B model, near-FP16 quality, and fast on both CPU and GPU. Q5_K_M adds ~1 GB for a measurable quality bump on reasoning tasks. Q6_K and Q8_0 approach FP16 fidelity but lose much of the memory advantage.

Avoid Q2_K and Q3_K_S unless you are severely memory-constrained โ€” degradation on complex reasoning becomes noticeable.

Quantisation vs. Distillation vs. Pruning

Quantisation keeps the architecture intact and only lowers weight precision. Distillation trains a smaller student model to mimic a larger teacher. Pruning removes entire weights or attention heads. Quantisation is the simplest, fastest to apply, and requires no retraining โ€” making it the first optimisation to try.

Practical Tips

When Not to Quantise

If you are training or fine-tuning, keep weights in FP16/BF16. Quantisation is an inference-time optimisation. Also, some niche tasks (exact arithmetic, multilingual low-resource languages) degrade more than average โ€” test before committing.

The Bottom Line

Quantisation is the single highest-leverage optimisation for local LLM deployment. It turns a model that needs a data-center GPU into one that runs on a MacBook Pro or a single 24 GB consumer card โ€” with quality loss most users never notice. Start with GGUF Q4_K_M, benchmark your prompts, and only move up if quality demands it.

Frequently asked questions

Does quantisation reduce model intelligence?
A 4-bit quantised model typically retains 95โ€“99% of FP16 benchmark scores. Most users cannot tell the difference in chat, coding, or reasoning tasks.
What is GGUF and why is it popular?
GGUF is a single-file format used by llama.cpp that bundles quantised weights, metadata, and tokenizer. It runs on CPU, Apple Silicon, and NVIDIA/AMD GPUs with zero dependencies.
Which quant level should I pick for a 7B model on 16 GB VRAM?
Q4_K_M (~4.5 GB) leaves plenty of headroom for context and KV cache. Q5_K_M (~5.5 GB) is also safe and slightly better on complex reasoning.
Can I quantise a model myself from Hugging Face?
Yes. Download the FP16/BF16 weights, convert to GGUF with <code>convert_hf_to_gguf.py</code>, then run <code>llama-quantize</code> to produce Q4_K_M, Q5_K_M, etc.

Want a model trained on your own data?

Tell us what you want to build and we will send a scoped plan within 1โ€“2 business days.

Request a fit assessment

More from the blog

How to Evaluate a Fine-Tuned Model Before You Ship It

How to Evaluate a Fine-Tuned Model Before You Ship It

A practical evaluation workflow for fine-tuned models: build a frozen golden set, score behaviour over vibes, stress-test the edges, and gate the release.
2026-09-23
Deploying a Custom AI Model Behind an OpenAI-Compatible API

Deploying a Custom AI Model Behind an OpenAI-Compatible API

Learn how to serve your fine-tuned model through an OpenAI-compatible endpoint so existing tools and code work without changes.
2026-09-23
How to train your own AI model on your own data (a practical 2026 guide)

How to train your own AI model on your own data (a practical 2026 guide)

A step-by-step guide to training a custom AI model on your own data: data readiness, fine-tuning vs. from-scratch, dataset preparation, evaluation, quantisation and deployment.
2026-09-22