What happens when nanochat meets DiLoCo?

Abstract: Although LLM training is typically centralized with high-bandwidth interconnects and large compute budgets, emerging methods target communication-constrained training in distributed environments. The model trade-offs introduced by this shift remain underexplored, and our goal is to study them. We use the open-source nanochat project, a compact 8K-line full-stack ChatGPT-like implementation containing tokenization, pretraining, fine-tuning, and serving, as a controlled baseline. We implement the DiLoCo algorithm as a lightweight wrapper over nanochat's training loop, performing multiple local steps per worker before synchronization with an outer optimizer, effectively reducing communication by orders of magnitude. This inner-outer training is compared against a standard data-parallel (DDP) setup. Because nanochat is small and inspectable, it enables controlled pipeline adaptations and allows direct comparison with the conventional centralized baseline. DiLoCo achieves stable convergence and competitive loss in pretraining but yields worse MMLU, GSM8K, and HumanEval scores after mid-training and SFT. We discover that using DiLoCo-pretrained weights and running mid- and post-training with DDP fails to recover performance, revealing irreversible representation drift from asynchronous updates that impairs downstream alignment. We provide this implementation as an official fork of nanochat on GitHub.