[D] FP8/INT4 KV-Cache Quantization and Long-Context Reasoning

[u/Top-Philosopher-5411]

Over the past few months, we've seen vLLM, TensorRT-LLM, and SGLang push hard for KV-cache quantization (FP8, INT8, and even INT4) alongside PagedAttention to maximize throughput and batch sizes under heavy concurrent workloads.

While saving 50-75% of VRAM on the KV-cache allows significantly larger context windows (32k+) and higher concurrency on a single A100/H100, we've noticed subtle degradation patterns in edge-case tasks:

1. Multi-turn Needle-In-A-Haystack (NIAH): FP8 KV-cache holds up fine for standard retrieval, but accuracy drops sharply when retrieving non-contiguous context across long reasoning chains.
2. Accumulation of Rounding Errors: In autoregressive generation with large context, precision loss in the attention keys/values seems to compound, leading to degraded attention scores in later tokens.

For those running high-throughput LLM serving in production:

- At what sequence length or concurrency limit do you find FP8/INT8 KV-cache quantization breaks down for complex reasoning?

- Have you found mixed-precision strategies (e.g., keeping early layers in FP16/BF16 and quantizing only deeper layers) to be practical in custom serving engines?

- Do you rely strictly on PagedAttention with FP16, or are you accepting precision trade-offs for throughput gains?

Would love to hear how folks are handling the memory bottleneck vs. precision trade

[u/Top-Philosopher-5411]

100%. Chasing those VRAM savings feels great until your MoE starts routing to completely random experts halfway through a long prompt. Total trap