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How to cut LLM inference costs by 60% using TensorRT and INT8 Quantization

By Akshora AI Labs2 min read

  • LLM Optimization
  • TensorRT
  • Cloud Costs

The reality of scaling LLMs in production

Building a proof-of-concept with a massive language model is easy. Scaling it to thousands of users is where the unit economics often break down. Renting multi-GPU instances (like AWS p4d or A100s) 24/7 quickly erodes profit margins.

Before reaching for a smaller, less capable model, engineering teams should optimize the inference pipeline. The most effective method is quantization combined with an optimized execution engine like TensorRT.

What is model quantization?

Language models are typically trained using 16-bit floating-point numbers (FP16 or BF16). This means every parameter takes up 2 bytes of VRAM. A 70-billion parameter model needs over 140GB of VRAM just to load the weights, requiring multiple expensive GPUs.

Quantization compresses these weights into 8-bit (INT8) or even 4-bit (FP4/INT4) integers. An INT8 model cuts the memory footprint exactly in half. This allows you to fit a large model onto a single, cheaper GPU (like an RTX 4090 or L4), drastically reducing hardware costs.

TensorRT-LLM and continuous batching

Simply quantizing the model isn't enough; you need an inference server designed to take advantage of it. We use NVIDIA's TensorRT-LLM or vLLM.

  • TensorRT compilation: We compile the model into a highly optimized TensorRT engine specific to your target GPU architecture, fusing layers and optimizing memory access.
  • Continuous Batching (Inflight Batching): Traditional servers wait for an entire batch of requests to finish before starting the next. Continuous batching dynamically injects new requests the millisecond a slot opens up, maximizing GPU utilization and throughput.

The accuracy trade-off and calibration

Compressing weights introduces rounding errors, which can theoretically degrade the model's reasoning ability. To mitigate this, we use Post-Training Quantization (PTQ) with a calibration dataset.

By running a sample of your actual production data through the model during quantization, the algorithm learns which activations are most critical and preserves their dynamic range. In practice, INT8 quantization on models 8B and larger results in near-zero measurable accuracy loss for enterprise use cases.

Related serviceModel Quantization & Hardware Inference

Quick answers

Does INT8 quantization make the model hallucinate more?

When calibrated correctly using your specific domain data, INT8 quantization preserves the model's accuracy almost perfectly. We always benchmark the quantized model against the FP16 baseline to guarantee the output quality remains strictly within acceptable enterprise thresholds.

Do I have to use NVIDIA GPUs for TensorRT?

Yes, TensorRT is a proprietary optimization SDK developed by NVIDIA, designed specifically to accelerate inference on NVIDIA GPUs. If you are using alternative hardware, we utilize different serving engines like vLLM or ONNX Runtime.

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