Román Orús

Borja Aizpurua, Sukhbinder Singh, Román Orús

Large language models (LLMs) contain billions of parameters, yet many exact values are not essential. We show that what matters most is the relative rank of weights-whether one connection is stronger or weaker than another-rather than precise magnitudes. To reduce the number of unique weight values, we apply weight clustering to pretrained models, replacing every weight matrix with K shared values from K-means. For Llama 3.1-8B-Instruct and SmolLM2-135M, reducing each matrix to only 16-64 distinct values preserves strong accuracy without retraining, providing a simple, training-free method to compress LLMs on disk. Optionally fine-tuning only the cluster means (centroids) recovers 30-40 percent of the remaining accuracy gap at minimal cost. We then systematically randomize cluster means while keeping assignments fixed. Scrambling the relative ranks of the clusters degrades quality sharply-perplexity can increase by orders of magnitude-even when global statistics such as mean and variance are preserved. In contrast, rank-preserving randomizations cause almost no loss at mid and late layers. On the other hand, when many layers are perturbed simultaneously, progressive layer-by-layer replacement reveals that scale drift-not rank distortion-is the dominant collapse mechanism; however, an affine correction w' = aw + b with a > 0 (which preserves both rank order and overall weight distribution) can substantially delay this drift. This rank-based perspective offers a new lens on model compression and robustness.

Dominic Gribben, Carolina Allende, Alba Villarino et al.

We develop a tensor-network surrogate for option pricing, targeting large-scale portfolio revaluation problems arising in market risk management (e.g., VaR and Expected Shortfall computations). The method involves representing high-dimensional price surfaces in tensor-train (TT) form using TT-cross approximation, constructing the surrogate directly from black-box price evaluations without materializing the full training tensor. For inference, we use a Laplacian kernel and derive TT representations of the kernel matrix and its closed-form inverse in the noise-free setting, enabling TT-based Gaussian process regression without dense matrix factorization or iterative linear solves. We found that hyperparameter optimization consistently favors a large kernel length-scale and show that in this regime the GPR predictor reduces to multilinear interpolation for off-grid inputs; we also derive a low-rank TT representation for this limit. We evaluate the approach on five-asset basket options over an eight dimensional parameter space (asset spot levels, strike, interest rate, and time to maturity). For European geometric basket puts, the tensor surrogate achieves lower test error at shorter training times than standard GPR by scaling to substantially larger effective training sets. For American arithmetic basket puts trained on LSMC data, the surrogate exhibits more favorable scaling with training-set size while providing millisecond-level evaluation per query, with overall runtime dominated by data generation.