<ul data-eligibleForWebStory="true">Quantization is a method used to enable the use of large language models (LLMs) on limited hardware by reducing the number of bits per parameter.Most LLMs currently utilize 16-bit floating point formats, but using 4-bit quantization can lead to up to a 4x reduction in model size.Quantization algorithms are designed to minimize model size while maintaining performance.This article delves into the Activation-Aware Weight Quantization (AWQ) algorithm and its application to a small local LLM in a practical scenario.Quantization involves reducing the number of bits required to represent variables, resulting in smaller data storage.An example demonstrates the process of converting a 16-bit floating-point number to a 4-bit representation through a scaling factor.