Private Fine-tuning of Large Language Models with Zeroth-order
  Optimization
Xinyu Tang Ashwinee Panda Milad Nasr Saeed Mahloujifar Prateek Mittal
Fine-tuning large pretrained models on private datasets may run the risk of
violating privacy. Differential privacy is a framework for mitigating privacy
risks by enforcing algorithmic stability. DP-SGD enables training models with
private data in a privacy-preserving manner, but raises new obstacles in the
form of performance loss and significant engineering challenges. We introduce
DP-ZO, a new method for fine-tuning large language models that preserves the
privacy of training data by privatizing zeroth-order optimization. A key
insight into the design of our method is that the direction of the gradient in
SPSA, the zeroth-order algorithm we use, is always random and the only
information that depends on private data is the step size, i.e., a scalar.
Therefore, we only need to privatize the scalar step size, which is
memory-efficient. DP-ZO, which can be instantiated with either Laplace or
Gaussian noise, provides a strong privacy-utility trade-off across different
tasks, and model sizes, under conservative privacy budgets. One noteworthy
result is that DP-ZO exhibits just $1.86\%$ performance degradation due to
privacy at $(1,10^{-5})$-DP when fine-tuning OPT-66B on 1000 training samples
from SQuAD.