arXiv Computation and Language By Youpeng Zhao, Tian Tan, Liqian Peng, Jun Wang, Alec Go

MILO: Efficient Many-shot In-Context Learning with Block-wise Low-rank Compression

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MILO is a compression framework that reduces the key-value cache memory used in many-shot in-context learning by applying block-wise low-rank compression. It dynamically allocates rank budgets to blocks based on information entropy, preserving important information while aggressively compressing redundant parts. Experiments on Qwen2.5 models show up to a 50% reduction in KV cache memory and a 1.8× throughput improvement with negligible performance loss on classification and reasoning tasks.

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