When Perplexity Lies: Generation-Focused Distillation of Hybrid Sequence Models

Converting a pretrained Transformer into a more efficient hybrid model through distillation offers a promising approach to reducing inference costs. However, achieving high-quality generation in distilled models requires careful joint design of both the student architecture and the distillation process. Many prior distillation works evaluate downstream multiple-choice benchmarks by ranking candidate answers with log-likelihood rather than requiring autoregressive generation, which can obscure important differences in model quality. For example, we show that a 7B parameter distilled model that nearly matches its teacher to within 0.2\,pp under log-likelihood scoring actually falls behind by 20.8\,pp when the model must generate answers autoregressively. We propose a Hybrid Kimi Delta Attention (Hybrid-KDA) architecture paired with GenDistill, a multi-stage distillation pipeline, and use generation-based evaluation throughout to guide design decisions. Applying this approach to Qwen3-0.6B, we systematically ablate six design axes: training objective, loss masking, training duration, dataset selection, parameter freezing, and architecture choice. We find that log-likelihood-based evaluation consistently underestimates the gap between teacher and student, and can in some cases reverse the ranking of design choices, meaning that conclusions drawn from perplexity-only evaluation may be misleading. Among the factors we study, dataset selection, completion-only masking, and freezing attention layers during post-training have the largest impact on generation quality. Our best Hybrid-KDA model retains 86--90\% of teacher accuracy on knowledge benchmarks while reducing KV cache memory by up to 75\% and improving time-to-first-token by 2--4$\times$ at 128K-token contexts.

AllMem: A Memory-centric Recipe for Efficient Long-context Modeling

Large Language Models (LLMs) encounter significant performance bottlenecks in long-sequence tasks due to the computational complexity and memory overhead inherent in the self-attention mechanism. To address these challenges, we introduce \textsc{AllMem}, a novel and efficient hybrid architecture that integrates Sliding Window Attention (SWA) with non-linear Test-Time Training (TTT) memory networks. \textsc{AllMem} enables models to effectively scale to ultra-long contexts while mitigating catastrophic forgetting. This approach not only overcomes the representation constraints typical of linear memory models but also significantly reduces the computational and memory footprint during long-sequence inference. Furthermore, we implement a Memory-Efficient Fine-Tuning strategy to replace standard attention layers in pre-trained models with memory-augmented sliding window layers. This framework facilitates the efficient transformation of any off-the-shelf pre-trained LLM into an \textsc{AllMem}-based architecture. Empirical evaluations confirm that our 4k window model achieves near-lossless performance on 37k LongBench with a marginal 0.83 drop compared to full attention. Furthermore, on InfiniteBench at a 128k context, our 8k window variant outperforms full attention, which validates the effectiveness of our parameterized memory in mitigating noise and maintaining robust long-range modeling without the prohibitive costs of global attention.