If in short, for many inference tasks the bottleneck is memory bandwidth. Suppose you have a machine with a memory bandwidth of 256 GB/s, and let's say you want to do inference for 4B model (model with 4 billion parameters). If you will load the model in BF16 format (16 bits), each forward pass (i.e. each token generated) will require roughly ~8 GB of memory bandwidth. So, 256/8 = 32 t/s, and that's the generation speed you will be strictly capped at even if your processing power is measured in exaFLOPS. But let's say now that you have decided to instead quantize the model and then run the quantized version. Suppose you have made a Q4_K_M version (4 bits + some weights will take more). Now each of your forward passes will take roughly 2-3 GB (rough approximations, reality is different) of memory bandwith (actually, it will be around 2 GB), and even in the worst case 256/3 = 85.3, while 256/2 = 128 t/s. Quants can reduce quality of the model and lower it's performance, but in most modern quantization methods those losses are usually negligible (although, of course, they're still present). So, as you can see, it can be concluded that quantization "widens" (it's not removing it fully) memory bottleneck while still preserving (not always though) acceptable quality.

(Sorry for my terrible English, it's not my native language)

So let’s start with a really simple decoder transformer with a single layer and single attention head, and train it to predict the next token in a sequence of text. To predict the next token you need a few things: a query for the very last token in the sequence, and a key and value for every prior token. You take your query and compute a dot product with every prior key (two large vectors in, scaler attention score out). That scaler attention score first goes through softmax, and then becomes the weight you use to compute a weighted average of your values, new value goes through the mlp, mlp output is projected into the logits from which you sample your next token (that’s the general idea at least skipped a few steps).

The last query in the sequence will be new for every new token you predict, but the set of prior keys and values stay the same, ie keys and values are reusable. The key value cache gets bigger and bigger for each new token you add to the sequence, and that’s where compression comes in. You have to store the keys and values in vram, and you’d like to keep the size down by not storing the raw uncompressed tensors. To make this work well your compression needs two things: it needs to be fast so that you can compress and decompress on the fly, and it needs to play well with softmax attention. Prior attempts at compression usually suck at one or the other, either the speed to decompress is too slow and your token/s takes a hit, or you lose important precision and the model output quality suffers. The claim in the paper is that they’ve made progress on both.