LoopFM: Learning frOm HistOrical RePresentations of Foundation Model for Recommendation

arXiv:2605.29280 · cs.LG, cs.AI, cs.IR · Submitted 2026-05-28 · Read on arXiv

cs.LG, cs.AI, cs.IR

Submitted: 2026-05-28

Updated: 2026-10-07

Comments: Hua Zheng, Shali Jiang, Boyang Liu contributed equally to this work

Code: https://github.com/reczoo/BARS

License: http://creativecommons.org/licenses/by-sa/4.0/

The gist: Knowledge distillation (KD) transfers a single scalar prediction from a large foundation model (FM) to compact vertical models (VMs), suffering from diminishing transfer ratio -- the fraction of FM

Terminology

Abstract

Knowledge distillation (KD) transfers a single scalar prediction from a large foundation model (FM) to compact vertical models (VMs), suffering from diminishing transfer ratio -- the fraction of FM improvement captured by the VM -- as a single scalar cannot convey the rich intermediate knowledge that larger FMs learn. To address this bottleneck, we propose LoopFM (Learning frOm HistOrical RePresentations of FM), a framework that opens a high-bandwidth transfer channel by structuring FM intermediate embeddings as input features (e.g., user history sequence) for downstream VMs, without requiring real-time FM inference at serving and architectural coupling between FM and VM. We provide a theoretical framework for LoopFM with a gain decomposition and transfer-ratio analysis. On three public benchmarks, LoopFM demonstrates strong AUC improvements (e.g., 6%+ on TaobaoAd) and complementary knowledge transfer capability with KD. On industrial-scale systems (billions of examples, trillion-parameter FMs), LoopFM approximately doubles the knowledge transfer ratio on top of KD, delivering a +0.5% conversion improvement in the first half after its initial launch, and +1.03% and +1.22% conversion improvement from two individual launches in the subsequent half. Through systematic experiments, LoopFM demonstrates a scaling law in sequence length, embedding dimension, and upstream FM size.

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