Private Federated Learning using Preference-Optimized Synthetic Data

Abstract

In practical settings, differentially private federated learning (DP-FL) is the dominant method for training models from private, on-device client data. Recent work has suggested that DP-FL may be enhanced or outperformed by methods that use DP synthetic data (Wu et al., 2024; Hou et al., 2024). The primary algorithms for generating DP synthetic data for FL applications require careful prompt engineering based on public information and/or iterative private client feedback. Our key insight is that the private client feedback collected by prior DP synthetic data methods (Hou et al., 2024; Xie et al., 2024) can be viewed as a preference ranking. Our algorithm, Preference Optimization for Private Client Data (POPri) harnesses client feedback using preference optimization algorithms such as Direct Preference Optimization (DPO) to fine-tune LLMs to generate high-quality DP synthetic data. To evaluate POPri, we release LargeFedBench, a new federated text benchmark for uncontaminated LLM evaluations on federated client data. POPri closes the gap in next-token prediction accuracy between the fully-private and non-private settings by up to 68%, compared to 52% for prior synthetic data methods, and 10% for state-of-the-art DP federated learning methods. The code and data are available at https://github.com/meiyuw/POPri.