What are small language models and how do they differ from large ones? Microsoft recently released its latest small language model that can operate directly on the user's computer. If you haven't followed the AI industry closely, you might be asking: what exactly a small language model (SLM)? As AI becomes increasingly central to how we work, learn and solve problems, understanding the different types of AI models has never been more important. Large language models (LLMs) such as ChatGPT, Claude, Gemini and others are in widespread use.

Large Language Models (LLMs) have shown promising performance in knowledge-intensive reasoning tasks that require a compound understanding of knowledge. However, deployment of the LLMs in real-world applications can be challenging due to their high computational requirements and concerns on data privacy.Previous studies have focused on building task-specific small Language Models (LMs) by fine-tuning them with labeled data or distilling LLMs. However, these approaches are ill-suited for knowledge-intensive reasoning tasks due to the limited capacity of small LMs in memorizing the knowledge required.Motivated by our theoretical analysis on memorization, we propose Knowledge-Augmented Reasoning Distillation (KARD), a novel method that fine-tunes small LMs to generate rationales obtained from LLMs with augmented knowledge retrieved from an external knowledge base. Moreover, we further propose a neural reranker to obtain documents relevant to rationale generation. We empirically show that KARD significantly improves the performance of small T5 and GPT models on the challenging knowledge-intensive reasoning datasets, namely MedQA-USMLE, StrategyQA, and OpenbookQA.Notably, our method makes the 250M T5 models achieve superior performance against the fine-tuned 3B models, having 12 times larger parameters, on both MedQA-USMLE and StrategyQA benchmarks.

Edge computing processes data where it is generated, enabling faster decisions, lower bandwidth usage, and improved privacy. However, edge devices typically operate under strict constraints on processing power, memory, and energy consumption, making them unsuitable for large language models (LLMs). Fortunately, Small Language Models (SLMs) offer lightweight alternatives that bring AI inference to resource-constrained environments by significantly reducing computational cost while remaining suitable for specialization and customization. In this scenario, selecting the hardware platform that best balances performance and efficiency for SLM inference is challenging due to strict resource limitations. To address this issue, this study evaluates the inference performance and energy efficiency of commercial CPUs (Intel and ARM), GPUs (NVIDIA), and NPUs (RaiderChip) for running SLMs. GPUs, the usual platform of choice, are compared against commercial NPUs and recent multi-core CPUs. While NPUs leverage custom hardware designs optimized for computation, modern CPUs increasingly incorporate dedicated features targeting language-model workloads. Using a common execution framework and a suite of state-of-the-art SLMs, we analyze both maximum achievable performance and processing and energy efficiency across commercial solutions available for each platform. The results indicate that specialized backends outperform general-purpose CPUs, with NPUs achieving the highest performance by a wide margin. Bandwidth normalization proves essential for fair cross-architecture comparisons. Although low-power ARM processors deliver competitive results when energy usage is considered, metrics that combine performance and power (such as EDP) again highlight NPUs as the dominant architecture. These findings show that designs optimized for both efficiency and performance offer a clear advantage for edge workloads.

Language models have demonstrated remarkable performance on complex multi-step reasoning tasks. However, their evaluation has been predominantly confined to high-resource languages such as English. In this paper, we introduce a manually translated Bangla multi-step reasoning dataset derived from the English Reveal dataset, featuring both binary and non-binary question types. We conduct a controlled evaluation of English-centric and Bangla-centric multilingual small language models on the original dataset and our translated version to compare their ability to exploit relevant reasoning steps to produce correct answers. Our results show that, in comparable settings, reasoning context is beneficial for more challenging non-binary questions, but models struggle to employ relevant Bangla reasoning steps effectively. We conclude by exploring how reasoning steps contribute to models' predictions, highlighting different trends across models and languages.

We present Apertus, a fully open suite of large language models (LLMs) designed to address two systemic shortcomings in today's open model ecosystem: data compliance and multilingual representation. Unlike many prior models that release weights without reproducible data pipelines or regard for content-owner rights, Apertus models are pretrained exclusively on openly available data, retroactively respecting `robots.txt` exclusions and filtering for non-permissive, toxic, and personally identifiable content. To mitigate risks of memorization, we adopt the Goldfish objective during pretraining, strongly suppressing verbatim recall of data while retaining downstream task performance. The Apertus models also expand multilingual coverage, training on 15T tokens from over 1800 languages, with ~40% of pretraining data allocated to non-English content. Released at 8B and 70B scales, Apertus approaches state-of-the-art results among fully open models on multilingual benchmarks, rivalling or surpassing open-weight counterparts. Beyond model weights, we release all scientific artifacts from our development cycle with a permissive license, including data preparation scripts, checkpoints, evaluation suites, and training code, enabling transparent audit and extension.

The deployment of large language models (LLMs) in automated negotiation has set a high performance benchmark, but their computational cost and data privacy requirements render them unsuitable for many privacy-sensitive, on-device applications such as mobile assistants, embodied AI agents or private client interactions. While small language models (SLMs) offer a practical alternative, they suffer from a significant performance gap compared to LLMs in playing emotionally charged complex personas, especially for credit negotiation. This paper introduces EQ-Negotiator, a novel framework that bridges this capability gap using emotional personas. Its core is a reasoning system that integrates game theory with a Hidden Markov Model(HMM) to learn and track debtor emotional states online, without pre-training. This allows EQ-Negotiator to equip SLMs with the strategic intelligence to counter manipulation while de-escalating conflict and upholding ethical standards. Through extensive agent-to-agent simulations across diverse credit negotiation scenarios, including adversarial debtor strategies like cheating, threatening, and playing the victim, we show that a 7B parameter language model with EQ-Negotiator achieves better debt recovery and negotiation efficiency than baseline LLMs more than 10 times its size. This work advances persona modeling from descriptive character profiles to dynamic emotional architectures that operate within privacy constraints. Besides, this paper establishes that strategic emotional intelligence, not raw model scale, is the critical factor for success in automated negotiation, paving the way for effective, ethical, and privacy-preserving AI negotiators that can operate on the edge.

This paper investigates the effectiveness of small language models (SLMs) for agentic tasks (function/tool/API calling) with a focus on running agents on edge devices without reliance on cloud infrastructure. We evaluate SLMs using the Berkeley Function Calling Leaderboard (BFCL) framework and describe parameter-driven optimization strategies that include supervised fine-tuning (SFT), parameter-efficient fine-tuning (PEFT), reinforcement learning (RL)-based optimization, preference alignment via Direct Preference Optimization (DPO), and hybrid methods. We report results for models including TinyAgent, TinyLlama, Qwen, and xLAM across BFCL categories (simple, multiple, parallel, parallel-multiple, and relevance detection), both in live and non-live settings, and in multi-turn evaluations. We additionally detail a DPO training pipeline constructed from AgentBank data (e.g., ALFRED), including our conversion of SFT data to chosen-rejected pairs using TinyLlama responses as rejected outputs and manual validation. Our results demonstrate clear accuracy differences across model scales where medium-sized models (1-3B parameters) significantly outperform ultra-compact models (<1B parameters), achieving up to 65.74% overall accuracy, and 55.62% multi-turn accuracy with hybrid optimization. This study highlights the importance of hybrid optimization strategies that enable small language models to deliver accurate, efficient, and stable agentic AI on edge devices, making privacy-preserving, low-latency autonomous agents practical beyond the cloud.

Large language models deliver strong reasoning and tool-use skills, yet their computational demands make them impractical for edge or cost-sensitive deployments. We present \textbf{Xmodel-2.5}, a 1.3-billion-parameter small language model designed as a \emph{drop-in agent core}. Training with maximal-update parameterization ($μ$P) allows hyper-parameters tuned on a 20M-parameter proxy to transfer directly to the full model, even under the parameter-tied \emph{tie-word-embedding} architecture. A 1.4T-token Warmup--Stable--Decay curriculum is used, and we further show that \textbf{switching from AdamW to Muon during the decay phase} improves the 13-task reasoning average by 4.58\,\% while keeping every other hyper-parameter fixed, verifying that early AdamW stability can be paired with late Muon sharpening for better downstream performance. FP8-mixed-precision training balances accuracy and throughput. All checkpoints, recipes, and evaluation code are released under the Apache-2.0 license.\footnote{https://huggingface.co/XiaoduoAILab/Xmodel-2.5 and https://huggingface.co/XiaoduoAILab/Xmodel-2.5-history (training checkpoints).} Training code and evaluation harness: https://github.com/XiaoduoAILab/Xmodel-2.5.

Large language models (LLMs) have achieved remarkable progress across domains and applications but face challenges such as high fine-tuning costs, inference latency, limited edge deployability, and reliability concerns. Small language models (SLMs), with compact, efficient, and adaptable features, offer promising solutions. Building on this potential, recent research explores collaborative frameworks that integrate their complementary strengths, leveraging SLMs' specialization and efficiency with LLMs' generalization and reasoning to address diverse objectives across tasks and deployment scenarios. Motivated by these developments, this paper presents a systematic survey of SLM-LLM collaboration from the perspective of collaboration objectives. We propose a taxonomy covering four goals: performance enhancement, cost-effectiveness, cloud-edge privacy, and trustworthiness. Under this framework, we review representative methods, summarize design paradigms, and outline open challenges and future directions toward efficient and secure SLM-LLM collaboration. The collected papers are available at https://github.com/FairyFali/SLMs-Survey.

Telecom networks are rapidly growing in scale and complexity, making effective management, operation, and optimization increasingly challenging. Although Artificial Intelligence (AI) has been applied to many telecom tasks, existing models are often narrow in scope, require large amounts of labeled data, and struggle to generalize across heterogeneous deployments. Consequently, network troubleshooting continues to rely heavily on Subject Matter Experts (SMEs) to manually correlate various data sources to identify root causes and corrective actions. To address these limitations, we propose a Multi-Agent System (MAS) that employs an agentic workflow, with Large Language Models (LLMs) coordinating multiple specialized tools for fully automated network troubleshooting. Once faults are detected by AI/ML-based monitors, the framework dynamically activates agents such as an orchestrator, solution planner, executor, data retriever, and root-cause analyzer to diagnose issues and recommend remediation strategies within a short time frame. A key component of this system is the solution planner, which generates appropriate remediation plans based on internal documentation. To enable this, we fine-tuned a Small Language Model (SLM) on proprietary troubleshooting documents to produce domain-grounded solution plans. Experimental results demonstrate that the proposed framework significantly accelerates troubleshooting automation across both Radio Access Network (RAN) and Core network domains.