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# Smaller model, sharper insights: How Atos approached structured outputs

**[Red Hat Developer](https://daily.dev/sources/rhdev)** · 10 min read · 0 upvotes · 0 comments

## Summary

A fine-tuned 1-billion-class model beat GPT-4.1 on a structured extraction task for a German public sector client, using Red Hat OpenShift AI and just 3 NVIDIA L40 GPUs. Atos fine-tuned Phi-4 Mini 3.8B, Qwen 2.5 1.5B, and Qwen 2.5 7B as student models on synthetic data generated by GPT-4.1 as a teacher model. JSON validity for Phi-4 Mini jumped from 1% before tuning to 99% after. On a custom 34-point rubric, fine-tuned Qwen 2.5 7B scored 30.8 points, beating GPT-4.1 with a detailed prompt at 30.5 points.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://developers.redhat.com/articles/2026/10/27/smaller-model-sharper-insights-how-atos-approached-structured-outputs>

## Questions this post answers

### Can a fine-tuned small model actually outperform GPT-4.1 on a real task?

Yes. In a proof of value for a German public sector client, a fine-tuned Qwen 2.5 7B model scored 30.8 points on a custom 34-point structured extraction rubric, beating GPT-4.1's best detailed-prompt score of 30.5. Fine-tuned Phi-4 Mini 3.8B also beat GPT-4.1's short-prompt score, reaching about 30 points versus roughly 29.

_Teams choosing between frontier APIs and fine-tuned small models can track real-world benchmarks like this on daily.dev._

### How much GPU hardware do I need to fine-tune a small language model for a custom task?

Only 3 NVIDIA L40 GPUs were needed to fine-tune three student models (Phi-4 Mini 3.8B, Qwen 2.5 1.5B, and Qwen 2.5 7B) across 27 variations using supervised fine-tuning and orthogonal subspace fine-tuning on Red Hat OpenShift AI, with no GPU required for the synthetic data generation step itself.

_Anyone scoping an on-premises fine-tuning project can keep up with hardware benchmarks like this via daily.dev._

### How do you improve JSON output reliability in a fine-tuned LLM for structured extraction?

Fine-tuning on domain-specific synthetic data dramatically improves JSON validity: the Phi-4 Mini base model produced valid JSON only 1% of the time, but after a single epoch of fine-tuning that jumped to 92%, reaching about 99% with further training, matching or beating GPT-4.1's 96% JSON validity rate.

_Developers chasing reliable structured output from LLMs can follow fine-tuning results like these on daily.dev._

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