LFM2.5-2.6B vs SmolLM3-3B

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.

SmolLM3-3B

A tiny, fully open cousin with documented tool calling and switchable thinking, for local subtasks and routing on laptops and CPUs. It needs about 8 GB in BF16, or under 3 GB in Hugging Face's 4-bit ONNX build for ONNX Runtime. The main risks are a 64K native context, no safety results and no repository changes since September 2025.

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

SmolLM3-3B

1. Start it with vllm serve HuggingFaceTB/SmolLM3-3B --enable-auto-tool-choice --tool-call-parser=hermes, or tool calls come back as text
2. Pass chat_template_kwargs with enable_thinking false for short tasks, since thinking is on by default; a /think or /no_think flag in the system prompt overrides the kwarg
3. Put earlier tool calls in the assistant message content, since the template ignores a tool_calls field when it renders history
4. Add the YaRN rope_scaling block (factor 2.0, original 65536) to config.json before sending more than 65,536 tokens
5. Use temperature 0.6 and top_p 0.95, the card's recommended sampling
6. Needs Transformers v4.53.0 or later; for llama.cpp use a GGUF from ggml-org or another converter, since Hugging Face publishes none
7. Validate JSON output yourself or use the runtime's guided decoding