Variable Bit-width Quantization: Learning Per-Group Precision for "Bigger-but-Smaller" Language Models

Low-bit quantization shrinks language models but treats precision as a single global hyper-parameter: every weight uses the same bit-width. We introduce Variable Bit-width Quantization (VBQ), a training-time method in which each contiguous group of 64 weights learns its own resolution from {1,2,4,8} bits via a Gumbel-Softmax relaxation, trained jointly by an alternating optimization that gives the precision logits a clean, task-aligned signal. VBQ discovers a consistent, strongly heterogeneous allocation within individual projection types, not merely across layers, impossible to express with per-layer methods: 69% of groups collapse to 1 bit, the LM head averages 1.09 bits, while the first MLP block keeps ~2.5 bits. This pattern is stable enough to freeze into a fixed recipe and reuse without further search. The recipe yields a "bigger-but-smaller" regime: a 131M model at 1.82 mean bits reaches perplexity 4.2 on TinyStories, beating a 55M FP16 model (PPL 4.4) at 3.8x less storage, and lets a 1.46B model on FineWeb-Edu match a 593M FP16 control at ~3.7x less storage with 2.5x more parameters. As quality-per-byte, VBQ is 3.9-8.4x more efficient than FP16. The recipe maps directly to packed low-bit storage, so it also accelerates inference: with custom fused dequantize-and-multiply kernels, memory-bandwidth-bound autoregressive decode is faster at equal output, and the speedup grows with scale (parity at 131M, 1.9x at 1.0B, 4.7x at 9B on Apple silicon). A distributional analysis (KL divergence and argmax-flip rate) reveals a striking mechanism: deeper layers progressively self-heal the quantization error injected by early layers. The win is a from-scratch, train-time phenomenon; scaling the search economically beyond 1.5B parameters remains open. VBQ reframes precision as a learnable, non-uniform resource and shows that spending a fixed bit budget unevenly beats spending it uniformly.