LLM Stack Layers & Performance Optimization

by Stephen M. Walker II, Co-Founder / CEO

What are the layers of the LLM Stack?

The LLM stack is like a multi-layered cake, where each layer adds a unique flavor to the overall experience. It's a series of components that work together to understand and generate human-like text, making interactions with AI seamless and effective.

B2C products often require a more complex LLM stack to handle the high volume and diversity of user interactions. In contrast, B2B products may prioritize a streamlined stack for efficient, specialized professional worlflows.

The LLM stack consists of several layers, each contributing to the overall functionality and performance of the application. Here are the key layers:

  • Data Layer — This layer is responsible for the featurization, storage, and retrieval of relevant information for the model to respond to user queries. It ensures that the model does not have access to data it shouldn't.

  • Model Layer — This layer contains the LLM itself, which is responsible for understanding and generating text based on the input it receives. The model can be trained from scratch, fine-tuned from an open-source model, or accessed via a hosted API.

  • Deployment Layer — This layer handles the challenges of bringing LLM features to production. It includes aspects like security, governance, and orchestration of various components of the LLM infrastructure. Companies operating in this space are often referred to as "LLMOps".

  • Interface Layer — This layer is where the LLM interacts with the world. It's not just about generating text but also about taking actions based on the generated text. For example, an LLM personal assistant might book dinner reservations, or an LLM security analyst might fix permissions on a misconfigured cloud instance.

In addition to these, some sources also mention a Personalization Layer as the highest layer in the language model stack. In this layer, prompt engineering and language model manipulation are used to customize the output and develop a personalized user experience.

Each of these layers interacts with the others, and optimizing the performance of an LLM application involves considering all of these layers together.

How do you optimize LLM performance across the entire stack?

Optimizing LLM performance across the stack means making improvements at every level, from data handling to user interaction. It's about fine-tuning each layer to work together more efficiently, enhancing the overall speed and quality of the LLM application.

To maximize the performance of your LLM application, consider the following strategies:

Model Optimization Techniques

  • Model Pruning — Trim unnecessary parts of the model to reduce size without significantly impacting performance.
  • Quantization — Convert model weights to lower precision formats (e.g., from float32 to bfloat16 or int8) to reduce memory requirements and potentially increase speed.
  • Model Distillation — Train a smaller model to mimic the behavior of a larger one, preserving performance while reducing size.
  • Parallel Processing — Utilize multi-threading or distributed computing to process data in parallel, speeding up inference times.
  • Subword Tokenization — Use efficient tokenization methods to reduce the number of input tokens, which can speed up processing.

Inference Time Reduction

  • Batch Processing — Process multiple samples concurrently to make better use of hardware capabilities.
  • Lower Precision — Operate at reduced numerical precision to decrease memory demands and potentially speed up computations.
  • Memory Optimization — Implement techniques like tensor sharding and mixed precision training to reduce memory consumption.

Retrieval and Prompt Engineering

  • Retrieval-Augmented Generation (RAG) — Provide the LLM with access to relevant, domain-specific content to improve context understanding.
  • Prompt Engineering — Iteratively experiment with prompts to guide the LLM towards more accurate and relevant outputs.

Fine-Tuning and Iterative Improvement

  • Fine-Tuning — Adjust the LLM parameters on a specific dataset to improve performance on tasks relevant to your application.
  • Consistent Evaluation — Use consistent metrics to evaluate changes and guide the optimization process.

Hardware and Software Considerations

  • GPU and CPU Optimization — Use GPU-accelerated libraries and data preprocessing for GPU efficiency, and employ compiler flags, caching, and distributed computing for CPU performance.
  • Use of Accelerators — Leverage GPUs, TPUs, and other accelerators, ensuring you're using the best available algorithms and architectures.

Application-Specific Strategies

  • Understand Your Use Case — Different applications may require unique optimization strategies, so tailor your approach to the specific needs of your LLM deployment.

Tools and Libraries

  • Utilize Libraries — Consider using libraries like Lit-Parrot for ready-to-use implementations of LLMs that may offer optimized inference times.
  • Intel Extension for PyTorch — Explore Intel's extension for PyTorch for CPU-specific optimizations that can improve performance.

By applying these strategies, you can enhance the speed and efficiency of your LLM application, ensuring it operates effectively in a production environment. Remember that optimization is an iterative process, and continuous testing and adjustment are key to achieving the best performance.

How do you measure performance across all of those dimensions?

To measure performance across the dimensions of Model, Inference, Retrieval, Prompts, Fine-tuning, and Hardware, you would need to establish a set of metrics and testing procedures that capture the nuances of each area. Here's how you can approach it:


  • Accuracy Metrics — Use standard metrics like precision, recall, F1 score, or BLEU score for language tasks to measure the model's output quality.
  • Model Size — Measure the model's storage footprint, typically in megabytes or gigabytes.
  • Complexity — Evaluate the number of operations (FLOPs) required for a forward pass.


  • Latency — Measure the time taken for a single input to pass through the model and return a result.
  • Throughput — Assess how many inputs the model can process per unit of time.
  • Resource Utilization — Monitor CPU and GPU utilization during inference.


  • Response Relevance — Evaluate the relevance of retrieved information to the query or task.
  • Retrieval Time — Time the retrieval process separately from the overall inference.


  • Prompt Efficacy — Test different prompts and measure the quality of responses using qualitative analysis or user studies.
  • Prompt Consistency — Check the consistency of responses to the same prompt over multiple iterations.


  • Performance Improvement — Compare the metrics pre and post fine-tuning to assess improvements.
  • Data Efficiency — Evaluate how the model performs with varying amounts of fine-tuning data.


  • Inference Speed — Benchmark the model on different hardware to measure inference speed.
  • Energy Consumption — Measure the power usage during model operation to assess efficiency.
  • Scalability — Test how well the model scales with increased hardware resources.

For comprehensive evaluation, you would implement a testing suite that automates these measurements across several scenarios and datasets. This suite would likely include scripts to run the model with different inputs, prompts, and hardware configurations, recording the relevant metrics for each test. Tools like TensorBoard, MLflow, or Comet ML can help track and visualize these metrics over time.

Additionally, it's important to consider the trade-offs between different metrics. For example, reducing model size might increase inference speed but could also decrease accuracy. Therefore, it's crucial to define the priorities for your application and optimize accordingly.

More terms

What is STanford Research Institute Planning System (STRIPS)?

STRIPS, or Stanford Research Institute Planning System, is a programming language and algorithm for automated planning in artificial intelligence. It was developed by Richard Fikes and Nils Nilsson at the Stanford Research Institute in 1969. STRIPS uses a state-space representation of the world to plan actions that will achieve a given goal. The system represents the current state of the world as a set of propositions, or facts, and defines actions as transformations between states. It then uses a search algorithm to find a sequence of actions that will lead from the initial state to the desired goal state. STRIPS has been widely used in robotics, game playing, and other applications where automated planning is required.

Read more

What is the belief-desire-intention (BDI) agent model?

The belief-desire-intention (BDI) software model is a computational model of the mind that is used in artificial intelligence (AI) research. The model is based on the belief-desire-intention (BDI) theory of mind, which is a psychological theory of how humans think and make decisions.

Read more

It's time to build

Collaborate with your team on reliable Generative AI features.
Want expert guidance? Book a 1:1 onboarding session from your dashboard.

Start for free