FedFit: Federated Fine-Tuning of LLMs via Vector-Bank Parameterization and Quantization

Hang Zou, Chao Zhang, Yuzhi Yang, Yu Tian, Samson Lasaulce +1

Federated Learning (FL) enables privacy-preserving fine-tuning of Large Language Models (LLMs), yet the massive communication overhead remains a critical bottleneck. Furthermore, applying Low-Rank Adaptation (LoRA) in FL faces a fundamental "aggregation dilemma" between the accurate Sum-of-Products (SoP) and the communication-efficient Product-of-Sums (PoS) implementations. To tackle these challenges, we propose FedFit. First, to significantly reduce communication overhead, we introduce a disjoint shared vector-bank parameterization that reconstructs high-dimensional adapter matrices from two compact and disjoint global vector banks. Second, to address the aggregation dilemma, we devise an alternating optimization schedule. By cycling between decoupled single-bank updates (which allow for accurate aggregation) and joint updates corrected by a Residual Spectral Aggregation mechanism, we resolve the conflict between SoP and PoS. Additionally, we integrate blockwise quantization with client-side error feedback to further compress the transmitted vectors. Furthermore, we establish theoretical convergence guarantees for the proposed algorithm. Extensive experiments on Qwen2.5 models…