Extreme Multi-label Text Classification (XMC) entails selecting the most relevant labels for an instance from a vast label set. Extreme Zero-shot XMC (EZ-XMC) extends this challenge by operating without annotated data, relying only on raw text instances and a predefined label set, making it particularly critical for addressing cold-start problems in large-scale recommendation and categorization systems. State-of-the-art methods, such as MACLR and RTS, leverage lightweight bi-encoders but rely on suboptimal pseudo labels for training, such as document titles (MACLR) or document segments (RTS), which may not align well with the intended tagging or categorization tasks. On the other hand, LLM-based approaches, like ICXML, achieve better label-instance alignment but are computationally expensive and impractical for real-world EZ-XMC applications due to their heavy inference costs. In this paper, we introduce LMTX (Large language Model as Teacher for eXtreme classification), a novel framework that bridges the gap between these two approaches. LMTX utilizes an LLM to identify high-quality pseudo labels during training, while employing a lightweight bi-encoder for efficient inference. This design eliminates the need for LLMs at inference time, offering the benefits of improved label alignment without sacrificing computational efficiency. Our approach achieves superior performance and efficiency over both LLM and non-LLM based approaches, establishing a new state-of-the-art in EZ-XMC.

Large output spaces, also referred to as Extreme multilabel classification (XMC), is a setting that arises, e.g., in large-scale tagging and product-to-product recommendation, and is characterized by the number of labels ranging from hundreds of thousands to millions. This means that the linear classification head, usually only a tiny fraction of the overall model, turns into the main driver for compute and memory demand. Current state-of-the-art XMC methods predominantly rely on FP16-FP32 mixed-precision training, which we show can be unstable, and inefficient in terms of memory usage and computational overhead. Meanwhile, existing low-precision methods typically retain higher precision for the classification layer. In this work, we propose ELMO, a pure low-precision training framework for XMC models using BFloat16 and Float8 data types. By leveraging Kahan summation and stochastic rounding, we demonstrate that XMC models can be effectively trained entirely in Float8, without relying on single-precision master weights or tensor scaling. Low-precision training, combined with our proposed memory optimizations—gradient fusion and chunking—enables significant reductions in GPU memory usage. For example, we train a 3-million-label XMC model with only 6.6 GiB of GPU memory, compared to the 39.7GiB required by the optimized SOTA method, Renee without compromising accuracy.

Extreme multilabel classification (XMLC) problems occur in settings such as related product recommendation, large-scale document tagging, or ad prediction, and are characterized by a label space that can span millions of possible labels. There are two implicit tasks that the classifier performs: Evaluating each potential label for its expected worth, and then selecting the best candidates. For the latter task, only the relative order of scores matters, and this is what is captured by the standard evaluation procedure in the XMLC literature. However, in many practical applications, it is important to have a good estimate of the actual probability of a label being relevant, e.g., to decide whether to pay the fee to be allowed to display the corresponding ad. To judge whether an extreme classifier is indeed suited to this task, one can look, for example, to whether it returns calibrated probabilities, which has hitherto not been done in this field. Therefore, this paper aims to establish the current status quo of calibration in XMLC by providing a systematic evaluation, comprising nine models from four different model families across seven benchmark datasets. As naive application of Expected Calibration Error (ECE) leads to meaningless results in long-tailed XMC datasets, we instead introduce the notion of calibration@k (e.g., ECE@k), which focusses on the top-k probability mass, offering a more appropriate measure for evaluating probability calibration in XMLC scenarios. While we find that different models can exhibit widely varying reliability plots, we also show that post-training calibration via a computationally efficient isotonic regression method enhances model calibration without sacrificing prediction accuracy. Thus, the practitioner can choose the model family based on accuracy considerations, and leave calibration to isotonic regression.