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Fine-Tuning LLMs

Master the art of adapting foundation models to your specific use cases


Overview

Fine-tuning transforms general-purpose language models into specialized tools for your domain. This section covers everything from deciding when to fine-tune to advanced techniques like RLHF and DPO, with practical code examples and interview-focused content.


Learning Objectives

By completing this module, you will be able to:

  • Evaluate when fine-tuning is the right approach vs prompting or RAG
  • Implement full fine-tuning and parameter-efficient methods (LoRA, QLoRA)
  • Design instruction-tuning datasets and preference data pipelines
  • Apply RLHF and DPO to align models with human preferences
  • Diagnose common failure modes like overfitting and catastrophic forgetting

Module Structure


Modules

ModuleDescriptionKey Topics
When to Fine-TuneDecision framework for customization strategiesPrompt engineering vs RAG vs fine-tuning
Full Fine-TuningComplete model weight updatesTraining loops, catastrophic forgetting
PEFT MethodsParameter-efficient fine-tuningLoRA, QLoRA, AdaLoRA, IA3, adapters
Data PreparationDataset quality and curationDeduplication, synthetic data, mixing
Instruction TuningTeaching models to follow instructionsFLAN, T0, template design
RLHF & DPOHuman preference alignmentReward modeling, PPO, DPO
EvaluationMeasuring fine-tuning successOverfitting, benchmarks, A/B testing

Fine-Tuning Landscape


Quick Decision Matrix

ApproachData NeededCompute CostUse When
PromptingNone$Task is expressible in natural language
RAGDocuments$$Need external/dynamic knowledge
LoRA/PEFT1K-100K examples$$Style/format changes, domain adaptation
Full Fine-Tuning10K-1M examples$$$$Fundamental capability changes
RLHF/DPOPreference pairs$$$$$Alignment with human values

Interview Focus Areas

Common Interview Topics

  1. Trade-off Analysis: When to use which customization approach
  2. Technical Implementation: LoRA math, training loops, hyperparameters
  3. Failure Modes: Catastrophic forgetting, overfitting, mode collapse
  4. Data Quality: How data issues manifest in fine-tuned models
  5. Alignment: RLHF vs DPO, reward hacking, preference data quality

Prerequisites

Before diving into fine-tuning, ensure familiarity with:

  • Transformer architecture fundamentals
  • PyTorch basics (tensors, autograd, nn.Module)
  • Basic NLP concepts (tokenization, embeddings)
  • Familiarity with HuggingFace ecosystem

Tools & Libraries

LibraryPurpose
transformersModel loading, tokenizers, Trainer API
peftLoRA, AdaLoRA, IA3 implementations
trlRLHF, DPO, reward modeling
datasetsData loading and preprocessing
accelerateDistributed training
bitsandbytesQuantization for QLoRA

Summary

ConceptKey Insight
Fine-Tuning PurposeAdapt general models to specific tasks/domains
PEFT Advantage10-1000x fewer trainable parameters
Data QualityMore important than data quantity
EvaluationMust test beyond training distribution
AlignmentRLHF/DPO for human preference optimization

Sources

  • Hu et al., "LoRA: Low-Rank Adaptation of Large Language Models" (2021)
  • Dettmers et al., "QLoRA: Efficient Finetuning of Quantized LLMs" (2023)
  • Ouyang et al., "Training language models to follow instructions with human feedback" (2022)
  • Rafailov et al., "Direct Preference Optimization" (2023)
  • Wei et al., "Finetuned Language Models Are Zero-Shot Learners" (FLAN) (2021)