Step-3 is Large yet Affordable: Model-system Co-design for Cost-effective Decoding
On the map: Mixture-of-experts → Efficient MoE training and inference systems
Abstract (arXiv)
Large language models (LLMs) face low hardware efficiency during decoding, especially for long-context reasoning tasks. This paper introduces Step-3, a 321B-parameter VLM with hardware-aware model-system co-design optimized for minimizing decoding costs. Step-3 innovates in two key dimensions: (1) A novel Multi-Matrix Factorization Attention (MFA) mechanism that significantly reduces both KV cache size and computation while maintaining high attention expressiveness, and (2) Attention-FFN Disaggregation (AFD), a distributed inference system that decouples attention and Feed-Forward Network (FFN) layers into specialized subsystems. This co-design achieves unprecedented cost efficiency: Step-3 significantly reduces theoretical decoding costs compared with models like DeepSeek-V3 and Qwen3 MoE 235B, with the gains widening at longer context. Step-3 achieves low cost while activating 38B parameters per token (more than DeepSeek-V3 and Qwen3 MoE 235B), demonstrating that hardware-aligned attention arithmetic intensity, MoE sparsity, and AFD are critical to cost-effectiveness. We perform a head-to-head comparison with DeepSeek-V3 in its favorable scenarios. Our implementation on Hopper GPUs achieves a decoding throughput of up to 4,039 tokens per second per GPU under 50ms TPOT SLA (4K context, FP8, no MTP). It is higher than DeepSeek-V3's 2,324 in the same setup and sets a new Pareto frontier for LLM decoding.
Key facts. Cited by 55 papers in the map (data through 14 Oct 2026). Placed in Efficient MoE training and inference systems, one of 12 directions in Mixture-of-experts. Builds on 11 of its 24 references that are in the map. First posted on arXiv 25 Jul 2025.
Builds on
11 of 24 references.
Closest ancestors · 3
Same direction, newest first
- 2025Serving Large Language Models on Huawei CloudMatrix38415 Jun
- 2025Insights into DeepSeek-V3: Scaling Challenges and Reflections on Hardware for AI Architectures14 May
- 2022Accelerating Distributed MoE Training and Inference with Lina31 Oct
Other references · 8
- 2017Attention Is All You Needcited by 60,361
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- 2024Upcycling Large Language Models into Mixture of Expertscited by 49
- 2025InfiniteHBD: Building Datacenter-Scale High-Bandwidth Domain for LLM with Optical Circuit Switching Transceiverscited by 7
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Citing papers per year: 2025: 20; 2026: 35.
55 papers.
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By area:
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- 2026DeepSeek-OCR 2: Visual Causal Flow28 Jan 2026
- 2026STEP3-VL-10B Technical Report14 Jan 2026
- 2025OpenGround: Planning-based Online Perception for Open-World 3D Visual Grounding28 Dec 2025
- 2025Role-Based Fault Tolerance System for LLM RL Post-Training27 Dec 2025
- 2025In-Context Learning with Unpaired Clips for Instruction-based Video Editing16 Oct 2025
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- 2025Hardwired-Neurons Language Processing Units as General-Purpose Cognitive Substrates22 Aug 2025
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