SIGNALAI·May 21, 2026, 4:00 AMSignal75Medium term

LLMs on the Line: Data Determines Loss-to-Loss Scaling Laws

Source: arXiv cs.LG

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LLMs on the Line: Data Determines Loss-to-Loss Scaling Laws

arXiv:2502.12120v3 Announce Type: replace Abstract: Scaling laws guide the development of large language models (LLMs) by offering estimates for the optimal balance of model size, tokens, and compute. More recently, loss-to-loss scaling laws that relate losses across pretraining datasets and downstream tasks have emerged as a powerful tool for understanding and improving LLM performance and generalization. In this work, we investigate which factors most strongly influence loss-to-loss scaling. Our experiments reveal that the pretraining data determines the scaling trend. In contrast, model siz

Why this matters
Why now

The proliferation of open-source and proprietary LLMs, alongside increased research into their underlying mechanisms, brings us closer to understanding optimal training strategies.

Why it’s important

This research provides critical insights for optimizing LLM development, directly influencing the efficiency and effectiveness of resource allocation in an increasingly compute and data-intensive AI landscape.

What changes

The focus for improving LLM performance shifts more demonstrably towards quality and characteristics of pretraining data, rather than solely model size or compute at later stages.

Winners
  • · Data curation platforms
  • · Organizations with proprietary, high-quality datasets
  • · Researchers specializing in data-centric AI
Losers
  • · LLM developers solely focused on brute-force scaling
  • · Generative AI models trained on low-quality data
  • · Data brokers selling undifferentiated datasets
Second-order effects
Direct

Increased investment in data collection, cleaning, and augmentation for LLM pretraining.

Second

New competitive advantages will emerge for organizations that can secure and process domain-specific, high-quality data at scale.

Third

The development of bespoke datasets tailored to specific applications or languages could lead to highly specialized and performant LLMs, further fragmenting the LLM market.

Editorial confidence: 90 / 100 · Structural impact: 60 / 100
Original report

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Read at arXiv cs.LG
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