Tsinghua's Latent Compaction Compresses KV Cache 32× While Keeping 96.7% Retrieval Accuracy

Yingfa Chen · hf · 2026-10-15

Tsinghua NLP introduces Latent Compaction, which learns a compact document-specific KV cache via test-time training: cache entries are initialized using reconstruction importance, teacher attention, and key-space diversity, then jointly optimized by end-to-end distillation from the full-cache model with weights frozen and no access to downstream questions. On RULER it achieves 96.7% accuracy at 32× compression vs 40.0% for KVZip+, with gains on LongBench and Phonebook Lookup and transfer across Qwen3 and MiniCPM5. Code released.

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