Chain-based Distillation for Effective Initialization of Variable-Sized Small Language Models

Abstract: LLMs achieve strong performance but remain costly to deploy in resource-constrained settings. Training small LLMs (SLMs) from scratch is computationally expensive, while conventional knowledge distillation requires repeated access to large teachers for different target sizes, leading to poor scalability. To solve these problems, we propose \textbf{Chain-based Distillation (CBD)}, a scalable paradigm for efficiently initializing variable-sized LLMs. A sparse and limited sequence of intermediate models (called anchors) is constructed via stepwise distillation, forming a distillation chain that progressively transfers knowledge from the source LLMs. To support heterogeneous settings, we introduce \emph{bridge distillation} for cross-architecture and cross-vocabulary transfer. Models of variable sizes are initialized via parameter interpolation between adjacent anchors, eliminating repeated large teacher inference. Experiments show that the proposed method substantially improves efficiency and downstream performance. A 138M-parameter SLM without recovery pre-training, outperforms scratch-trained models on a 10B-token corpus on the specific task. CBD also demonstrates versatility in heterogeneous settings for initialize models with different architectures and vocabularies.