FLoRG: Federated Fine-tuning with Low-rank Gram Matrices and Procrustes Alignment

arXiv:2602.17095v2 Announce Type: replace-cross
Abstract: Parameter-efficient fine-tuning techniques such as low-rank adaptation (LoRA) enable large language models (LLMs) to adapt to downstream tasks efficiently. Federated learning (FL) further facilitates this process by enabling collaborative fine-tuning across distributed clients without sharing private data. However, the use of two separate low-rank matrices in LoRA for federated fine-tuning introduces two types of challenges. First, aggregation error can arise from separately aggregating the two low-rank matrices. Second, even if the server aggregates the product of two low-rank matrices, it needs to decompose the aggregated matrix back into low-rank matrices. Since the decomposition is not unique, it can lead to decomposition drift. To tackle the aforementioned challenges, we propose federated low-rank Gram-matrix aggregation (FLoRG), a federated fine-tuning framework which employs a single low-rank matrix for fine-tuning and aggregates its Gram matrix (i.e., the matrix of inner products of its column vectors). FLoRG can eliminate the aggregation error and reduce the communication overhead. It also minimizes the decomposition drift by introducing a Procrustes alignment approach which aligns the decomposed matrix between consecutive fine-tuning rounds for consistent updates. We theoretically analyze the convergence of FLoRG and prove that adopting the Procrustes alignment results in a tighter convergence bound. Experimental results across multiple LLM fine-tuning benchmarks demonstrate that FLoRG outperforms five state-of-the-art baseline schemes by providing higher downstream task accuracy and can reduce the communication overhead by up to 2041$times$.