LFM2.5-2.6B vs Nemotron 3 Nano 4B

LFM2.5-2.6B

A small, fast cousin for tool calls, extraction and long-context steps on a laptop or phone. Liquid's own 4-bit build is 1.6 GB, and every common runtime runs it. It always thinks, isn't meant for coding or knowledge-heavy work, and organisations over $10M of revenue need another licence. There are no safety results or security contact.

Nemotron 3 Nano 4B

A tiny reasoning cousin with trained tool calls, a thinking switch and 262,144 tokens of context, running in about 4 GB from NVIDIA's own GGUF on almost any machine. The main risks are serving commands that run repository code, no published safety results, a tool format left to the template, and files untouched and questions unanswered since March.

LFM2.5-2.6B

1. Quickest start is ollama run LiquidAI/lfm2.5-2.6b, 1.7 GB, or llama-cli -hf LiquidAI/LFM2.5-2.6B-GGUF
2. With vLLM or SGLang pass --tool-call-parser lfm2; for vLLM add --reasoning-parser qwen3 so the thinking comes back separately
3. Sample at temperature 0.1, top_k 50 and repetition_penalty 1.1, as the card and generation_config.json set
4. Put tools in the system prompt as List of tools: [...] JSON, or pass tools to apply_chat_template; calls come back as a Python list of function calls, and the system prompt can ask for JSON calls instead
5. Leave max_tokens unset or generous, since a low cap cuts the reasoning off mid-thought
6. Earlier thinking is dropped from the prompt unless preserve_thinking is true
7. Liquid's 328M LFM2.5-2.6B-DSpark drafter speeds decoding about 2.6 times in SGLang and on Apple silicon, per Liquid
8. Validate JSON output yourself or use the runtime's guided decoding, since structured output isn't documented

Nemotron 3 Nano 4B

1. Quickest start is ollama run nemotron-3-nano:4b, a 2.8 GB build
2. With llama.cpp use llama-server -hf nvidia/NVIDIA-Nemotron-3-Nano-4B-GGUF --jinja, NVIDIA's own Q4_K_M file
3. With vLLM, download nano_v3_reasoning_parser.py from the repository first and serve with --enable-auto-tool-choice --tool-call-parser qwen3_coder --reasoning-parser-plugin nano_v3_reasoning_parser.py --reasoning-parser nano_v3
4. The card's Transformers snippet names nvidia/NVIDIA-Nemotron-3-Nano-4B, use nvidia/NVIDIA-Nemotron-3-Nano-4B-BF16 instead
5. Thinking is on by default. Pass enable_thinking=False to the chat template for short tasks
6. Use temperature 1.0 and top_p 0.95 for reasoning and temperature 0.6 with top_p 0.95 for tool calling, as the card says
7. It's tuned for English only, and validate JSON yourself, since structured output isn't documented