Decentralized Low-Rank Fine-Tuning of Large Language Models

While parameter-efficient fine-tuning (PEFT) techniques like Low-Rank Adaptation (LoRA) offer computationally efficient adaptations of Large Language Models (LLMs), their practical deployment often assumes centralized data and training environments. However, real-world scenarios frequently involve distributed, privacy-sensitive datasets that require decentralized solutions. Federated learning (FL) addresses data privacy by coordinating model updates across clients, but it is typically based on centralized aggregation through a parameter server, which can introduce bottlenecks and communication constraints. Decentralized learning, in contrast, eliminates this dependency by enabling direct collaboration between clients, improving scalability and efficiency in distributed environments. Despite its advantages, decentralized LLM fine-tuning remains underexplored. In this work, we propose Dec-LoRA, an algorithm for decentralized fine-tuning of LLMs based on LoRA. Through extensive experiments on BERT and LLaMA-2 models, we show that Dec-LoRA maintains performance comparable to centralized LoRA across various conditions, including data heterogeneity and quantization constraints. This highlights its potential for scalable LLM fine-tuning in decentralized environments.