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VocabX: Reduces the inference cost of domain-specific small language models by 77% through cost-weighted vocabulary specialization.

Dharma-AI has introduced the VocabX method, which reconfigures the vocabulary of language models for specific tasks—such as automated scoring of Portuguese essays—by optimizing for cost rather than word frequency. Without modifying the model architecture, parameters, or training pipeline, empirical results show a 77% reduction in inference costs, while the evaluation score (bench score) improved from 0.703 to 0.810.

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