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Does LLM Size Matter? How Many Billions of Parameters do you REALLY Need?

BY 3qvia
July 7, 2025
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Exploring Large Language Models and Their Practicality

In this comprehensive exploration of large language models (LLMs), we delve into their applicability on different hardware, mainly focusing on running them locally rather than accessing them through cloud-based services. Understanding model size, precision, and performance metrics are key aspects of utilizing LLMs effectively.

Key Considerations

  1. What Determines LLM Size?

    • LLM size is defined by the number of parameters it contains, with parameters being the weights and biases of the neural network.
    • ChatGPT 3 had 175 billion parameters, highlighting that larger models require significantly more resources.
  2. Running LLMs Locally: The Size Dilemma

    • Smaller models ranging from 1 to 70 billion parameters can be operated locally.
    • The key is balancing model size and available computational resources, mainly RAM capacity.
    • Important aspect: The more parameters a model has, the larger the memory requirement.
  3. Reducing Model Requirements via Quantization

    • Quantization minimizes the precision of stored parameters, which can be tuned from the standard 32-bit down to as low as 4 bits.
    • Benefits include reduced memory use, allowing larger models to fit within limited resources.
    • Even at lower precisions like 4-bit, models can remain functionally effective.
  4. Evaluating LLM Performance

    • Tests were performed using various open-source models: Llama (Meta), Gemma (Google), Fi4 (Microsoft), and more.
    • The effectiveness of the models was measured across tasks like sentiment analysis, fact recall, language understanding, and math.
  5. Performance Insights

    • The experiment showed that quantization to 4-bits did not significantly degrade model performance for specific tasks.
    • For sophisticated queries, larger models exhibited better capabilities with minimal hallucination.
    • Despite precision and size, all models struggled with tasks inherently difficult for LLMs, like precise counting or complex reasoning without explicit instruction or context.
  6. Using Specialized Models

    • Some models like Quen Coder are specifically designed for tasks such as coding and performed exceptionally well in programming-related tests.
  7. Conclusions and Recommendations

    • Prioritize the use of the largest model permissible by your hardware’s RAM, especially leveraging 4-bit quantized models for best efficiency.
    • Opt for specialized LLMs tailored to specific domains if the task requirements match their design.
    • Microsoft's Fi4 emerged as one of the top performers in balancing size, capability, and practical application on local machines.

Summary

Adapting the choice of LLMs to encompass considerations like model size, precision through quantization, and task specialization can lead to effective utilization on localized hardware setups. The takeaway is to maximize parameter count within hardware limits while utilizing quantization to have broader and richer applications on a practical scale.

    Does LLM Size Matter? How Many Billions of Parameters do you REALLY Need?