Privacy-Aware Split Inference with Speculative Decoding for Large Language Models over Wide-Area Networks

Abstract: We present a practical system for privacy-aware LLM inference that splits a transformer between a trusted local GPU and an untrusted cloud GPU, communicating only intermediate activations over the network. Our system addresses the unique challenges of autoregressive LLM decoding over high-latency wide-area networks (WANs), contributing: (1) an asymmetric layer split where embedding and unembedding layers remain local, ensuring raw tokens never leave the trusted device; (2) the first application of lookahead decoding to split inference over WANs, amortizing network round-trip latency across multiple tokens per iteration; (3) an empirical inversion attack evaluation showing that split depth provides a tunable privacy-performance tradeoff -- an attacker can recover ~59%% of tokens at a 2-layer split but only ~35%% at an 8-layer split, with minimal throughput impact; (4) ablation experiments showing that n-gram speculation accepts 1.2-1.3 tokens per decoding step on average (peak of 7 observed on code), with acceptance rates consistent across model scales; (5) formal verification that lookahead decoding produces token-identical output to sequential decoding under greedy argmax, with zero quality degradation; and (6) scaling validation on Mistral NeMo 12B (40 layers), demonstrating that the system generalizes to larger models with only 4.9 GB local VRAM and matching 7B throughput. Evaluated on Mistral 7B and NeMo 12B over a ~80ms WAN link, our system achieves 8.7-9.3 tok/s (7B) and 7.8-8.7 tok/s (12B) with lookahead decoding, with an RTT decomposition model (validated at <6.2%% cross-validation error) projecting 15-19 tok/s at 20ms RTT.