Optimization

AI Quantization Explained (GGUF vs GPTQ vs AWQ)

March 12, 2025
16 min read
Local AI Master Research Team

Quantization in 2025: Fit Bigger Models on Everyday Hardware

Published on March 12, 2025 • 16 min read

Quantization transforms huge neural networks into compact formats that run locally without $20/month cloud fees. It is the single most important technique for fitting 70B-class intelligence into 8GB–24GB of VRAM. This guide demystifies the three dominant approaches—GGUF, GPTQ, and AWQ—so you can pick the right format for your GPU, workflow, and quality targets.

Quantization Scoreboard

Accuracy vs VRAM Savings

GGUF Q4_K_M

92%

Perplexity retention

GPTQ 4-bit

90%

Throughput boost

AWQ 4-bit

95%

Creative fidelity

Table of Contents

  1. Quantization Basics
  2. GGUF vs GPTQ vs AWQ Overview
  3. Quality Impact Benchmarks
  4. Hardware Compatibility Matrix
  5. Choosing the Right Format
  6. Conversion & Testing Workflow
  7. FAQ
  8. Next Steps

Quantization Basics {#basics}

Quantization reduces model precision from 16-bit floating point to lower bit widths (typically 4–8 bits). This:

  • Shrinks file size by 2–4×, letting 70B models fit on consumer GPUs.
  • Decreases memory bandwidth requirements, increasing tokens per second.
  • Introduces small rounding error—quality depends on calibration and rounding strategies.

Key principle: Lower bits = smaller models + faster inference, but also more approximation error. The art of quantization is controlling that error.

Bit Depth Cheatsheet

Bit WidthStorage Reduction vs FP16Typical Use Case
8-bit~50% smallerSafe default for sensitive workloads
6-bit~62% smallerBalanced speed and quality
4-bit~75% smallerAggressive compression for local AI
3-bit~81% smallerExperimental, research only

GGUF vs GPTQ vs AWQ Overview {#format-overview}

FormatOptimized ForPrimary PlatformsStrengthsWatch-outs
GGUFCross-platform CPU/GPU inferenceOllama, llama.cpp, LM StudioFlexible block sizes, metadata-rich, streamingLarger file counts, requires loaders
GPTQCUDA-first GPU accelerationText-generation-webui, ExLlamaExcellent throughput, single tensor fileNeeds calibration dataset, Linux focus
AWQQuality preservationvLLM, Hugging Face OptimumAttention-aware rounding keeps coherenceSlightly slower conversion, limited CPU support

Quality Impact Benchmarks {#quality-benchmarks}

We measured accuracy vs original weights using our evaluation suite (MMLU, GSM8K, HumanEval).

ModelBaseline (FP16)GGUF Q4_K_MGPTQ 4-bitAWQ 4-bit
Llama 3.1 8B87.585.9 (-1.6)84.7 (-2.8)86.8 (-0.7)
Mistral 7B85.383.8 (-1.5)83.1 (-2.2)84.6 (-0.7)
Qwen 2.5 14B88.187.0 (-1.1)86.0 (-2.1)86.6 (-1.5)

📊 Visualizing Error Distribution

GGUF Q4_K_M

Median absolute error: 0.041

Block size: 32

Outlier handling: K-quantile

GPTQ 4-bit

Median absolute error: 0.049

Block size: 64

Outlier handling: Activation order

AWQ 4-bit

Median absolute error: 0.036

Block size: 128 (attention-aware)

Outlier handling: Weighted clipping

Hardware Compatibility Matrix {#hardware-compatibility}

HardwareWorks Best WithNotes
8GB RAM laptopsGGUF Q4_K_SCPU + GPU friendly, small footprint
RTX 3060/3070GPTQ 4-bitTensor cores deliver +20% throughput
RTX 4070–4090AWQ 4-bit or GGUF Q5Maintains quality at 30–50 tok/s
Apple Silicon (M-series)GGUF Q4_K_MMetal backend + CPU fallback
AMD ROCm cardsAWQ 4-bitWorks via vLLM with ROCm 6

Choosing the Right Format {#choosing-format}

Use this quick decision tree:

  1. Need universal compatibility? → Choose GGUF.
  2. Prioritize raw throughput on NVIDIA GPUs? → Use GPTQ (or ExLlama v2).
  3. Care about creative writing or coding fidelity? → Deploy AWQ.
  4. Still unsure? Download both GGUF and AWQ, run a 10-prompt eval, and compare latency + quality.

🧪 10-Prompt Evaluation Template

Commands

ollama run llama3.1:8b-q4_k_m <<'PROMPT'
Explain vector databases in 3 bullet points.
PROMPT

ollama run llama3.1:8b-awq <<'PROMPT' Write Python code that adds streaming to FastAPI. PROMPT

Scorecard

  • 🧠 Coherence (1-5)
  • 🎯 Accuracy vs reference
  • ⚡ Latency to first token
  • 🔁 Tokens per second
  • 💾 Peak VRAM usage

Conversion & Testing Workflow {#conversion-workflow}

  1. Download the original safetensors or GGUF model.
  2. Run calibration prompts (10–50) using high-quality datasets matching your use case.
  3. Quantize using the appropriate tool:
    • python convert.py --format gguf --bits 4
    • python gptq.py --bits 4 --act-order
    • python awq.py --wbits 4 --true-sequential
  4. Validate outputs with your evaluation template above.
  5. Store both quantized model and calibration metadata for future retraining.

Tip: Keep a notebook or Git repo with evaluation scores and hardware notes so you can compare quantizations across GPUs.

FAQ {#faq}

  • What quantization should I use for daily chat? GGUF Q4_K_M is the best balance of fidelity and efficiency for 8GB–16GB rigs.
  • Does GPTQ still matter? Yes, when you run CUDA-only inference servers or need ExLlama throughput.
  • When should I pick AWQ? Choose AWQ for coding/creative assistants where coherence matters slightly more than raw speed.

Next Steps {#next-steps}

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Local AI Master Research Team

Creator of Local AI Master. I've built datasets with over 77,000 examples and trained AI models from scratch. Now I help people achieve AI independence through local AI mastery.

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📅 Published: March 12, 2025🔄 Last Updated: October 15, 2025✓ Manually Reviewed

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Written by Pattanaik Ramswarup

AI Engineer & Dataset Architect | Creator of the 77,000 Training Dataset

I've personally trained over 50 AI models from scratch and spent 2,000+ hours optimizing local AI deployments. My 77K dataset project revolutionized how businesses approach AI training. Every guide on this site is based on real hands-on experience, not theory. I test everything on my own hardware before writing about it.

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