# The Lossy Horizon: Error-Bounded Predictive Coding for Lossy Text Compression (Episode I)

arXiv: https://arxiv.org/abs/2510.22207 · HTML: https://mlsanity.com/paper/2510.22207/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Builds on 7 of its 12 references that are in the map.
- First posted on arXiv 25 Oct 2025.

## Builds on (most cited first, 7 of 7)

- [RoBERTa: A Robustly Optimized BERT Pretraining Approach](https://mlsanity.com/paper/1907.11692/) (2019)
- [BERTScore: Evaluating Text Generation with BERT](https://mlsanity.com/paper/1904.09675/) (2019)
- [Neural Discrete Representation Learning](https://mlsanity.com/paper/1711.00937/) (2017)
- [DistilBERT, a distilled version of BERT: smaller, faster, cheaper and lighter](https://mlsanity.com/paper/1910.01108/) (2019)
- [Language Modeling Is Compression](https://mlsanity.com/paper/2309.10668/) (2023)
- [Curriculum Learning by Transfer Learning: Theory and Experiments with Deep Networks](https://mlsanity.com/paper/1802.03796/) (2018)
- [LLMZip: Lossless Text Compression using Large Language Models](https://mlsanity.com/paper/2306.04050/) (2023)

## Built on by (most cited first, 1 of 1)

- [TextEconomizer: Enhancing Lossy Text Compression with Denoising Transformers and Entropy Coding](https://mlsanity.com/paper/2606.08184/) (2026)

## Abstract (arXiv)

Large Language Models (LLMs) can achieve near-optimal lossless compression by acting as powerful probability models. We investigate their use in the lossy domain, where reconstruction fidelity is traded for higher compression ratios. This paper introduces Error-Bounded Predictive Coding (EPC), a lossy text codec that leverages a Masked Language Model (MLM) as a decompressor. Instead of storing a subset of original tokens, EPC allows the model to predict masked content and stores minimal, rank-based corrections only when the model's top prediction is incorrect. This creates a residual channel that offers continuous rate-distortion control. We compare EPC to a simpler Predictive Masking (PM) baseline and a transform-based Vector Quantisation with a Residual Patch (VQ+RE) approach. Through an evaluation that includes precise bit accounting and rate-distortion analysis, we demonstrate that EPC consistently dominates PM, offering superior fidelity at a significantly lower bit rate by more efficiently utilising the model's intrinsic knowledge.