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  4. Liquid AI Releases LFM2.5 Q4_0 GGUF Models Using Quantization-Aware Distillation
Local LLMs

Liquid AI Releases LFM2.5 Q4_0 GGUF Models Using Quantization-Aware Distillation

Liquid AI has released Q4_0 GGUF 4-bit checkpoints for its LFM2.5 model series, trained using Quantization-Aware Distillation. These models recover up to 97% of accuracy lost to traditional quantization while maintaining native 4-bit speeds.

August 19, 2026· 5 min read
OKCurated by Oleksandr Kuzmenko, AI Product Engineer·Updated August 19, 2026·Sources cited on every story
AI-assisted · editor-reviewed·How we use AI
Liquid AI Releases LFM2.5 Q4_0 GGUF Models Using Quantization-Aware Distillation

Impact: Medium

Why it matters

Developers can now run highly accurate, lightweight LFM2.5 models locally with minimal memory footprint and zero speed degradation.

TL;DR

  • 01Quantization-Aware Distillation (QAD) recovers up to 97.4% of original model performance lost to 4-bit quantization.
  • 02Small models (230M and 350M) match Q5_K_M precision with up to 33% higher decoding speeds.
  • 03These GGUF checkpoints are optimized for edge hardware, including macOS GPU and Arm CPUs.

Key facts

Accuracy Recovered
Up to 97.4% of BF16 baseline
Supported Models
LFM2.5 (230M, 350M, 1.2B, 2.6B)
Format
Q4_0 GGUF
Throughput Gain (230M/350M)
4% to 33% over Q5_K_M

High-Precision Distillation for the Edge

Liquid AI has introduced Quantization-Aware Distillation (QAD) to bridge the gap between model size, execution speed, and reasoning capabilities. By distilling knowledge from a high-precision teacher model into a quantized student, the new Q4_0 GGUF checkpoints recover 97.1%, 96.5%, 97.4%, and 96.6% of their respective BF16 baseline performance across LFM2.5-230M, LFM2.5-350M, LFM2.5-1.2B-Instruct, and LFM2.5-2.6B.

Performance and Throughput Benchmarks

The updated checkpoints deliver native Q4_0 execution speeds and memory footprints while matching the accuracy of heavier quantization formats:

  • LFM2.5-230M and 350M: Match Q5_K_M quality with 4% to 33% higher decode throughput.
  • LFM2.5-1.2B and 2.6B: Match Q4_K_M quality with 3% to 14% higher decode throughput.
  • Compatibility: Matches Unsloth's UD-Q4_K_XL where applicable (for 230M and 1.2B models).

Deployment Targets

Developers can run these models locally using llama.cpp or any GGUF-compatible runtime. Hardware compatibility has been verified across GPU targets (MacBook Pro, NucBox EVO-X2) and Arm CPU targets (Samsung Galaxy S26 Ultra, Raspberry Pi 5).

Try it in 2 minutes

./llama-cli -m LFM2.5-1.2B-Instruct-QAD-Q4_0.gguf -p "Write a python function to merge two sorted arrays."

bash

✓ When to use

  • When deploying small, highly efficient LLMs on edge devices like Raspberry Pi 5 or mobile phones.
  • When you need the memory footprint of a 4-bit model but require the accuracy of 5-bit or original precision.
  • For low-latency, local agentic workflows or tool-use scenarios.

✕ When NOT to use

  • When your task demands extremely large parametric knowledge bases that only 70B+ models can provide.
  • If your deployment runtime does not support the GGUF Q4_0 standard format.

What to do today

  • →Download the new QAD Q4_0 GGUF models from Hugging Face.
  • →Benchmark local inference throughput on your target edge hardware using llama.cpp.
#llama.cpp

Sources

  • LFM2.5 Q4_0: Quantization-Aware Distillation for Edge Deployment
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