DP-Fusion: Token-Level Differentially Private Inference for Large Language Models
Rushil Thareja, Preslav Nakov, Praneeth Vepakomma, Nils Lukas

TL;DR
DP-Fusion introduces a provably private inference method for large language models that bounds token influence, enabling document privatization with strong privacy guarantees and improved utility over existing approaches.
Contribution
The paper presents DP-Fusion, a novel differential privacy mechanism for LLM inference that bounds token influence and enhances privacy-utility trade-offs.
Findings
Achieves 6x lower perplexity than related DPI methods.
Provides provable privacy guarantees at token level.
Effectively privatizes documents containing sensitive information.
Abstract
Large language models (LLMs) do not preserve privacy at inference-time. The LLM's outputs can inadvertently reveal information about the model's context, which presents a privacy challenge when the LLM is augmented via tools or databases containing sensitive information. Existing privacy-preserving methods at inference-time have significant limitations since they (i) lack provable guarantees or (ii) have a poor utility/privacy trade-off. We propose DP-Fusion, a Differentially Private Inference (DPI) mechanism for LLMs that provably bounds the influence a set of tokens in the context can have on the LLM's output. DP-Fusion works as follows: (1) label a subset of sensitive tokens, (2) infer the LLM without any sensitive tokens to obtain a baseline, (3) infer the LLM with the sensitive tokens, and (4) blend distributions so that the final output remains within a bounded distance of the…
Peer Reviews
Decision·ICLR 2026 Poster
- The authors propose a clever way to bound the influence of sensitive tokens during document paraphrasing with formal privacy guarantee. - The empirical evaluations are thorough, and DP-Fusion has demonstrated substantial gains over standard DP methods. - The paper is clear and well-written.
- Besides perplexity, the authors are suggested to measure the performance on downstream task to show the paraphrase utility. - DP-Fusion requires the user to paraphrase the document for $m+1$ times, and the user-side complexity should be thoroughly discussed.
Overall, the paper is well written. In particular, I liked the authors had a full section dedicated to describing the threat model. In addition, Figure 2 is quite clear in terms of providing an overview of the proposed method. The results also generally seem quite strong (except maybe with respect to No DPI - NER), providing much better perplexity values while also having relatively low ASR values for the attacks.
1. Page 4: The first paragraph of Section 4 could be strengthened: How exactly is DP Fusion different from the mentioned methods like PMixED, PATE and SUBMIX? Right now the differences are not very clear. 2. Page 6: In line 3 of the algorithm box, it seems D’ which contains D and which itself is defined as the union over the public AND the private tokens is passed to the LLM to compute the public distribution. However, doesn’t passing D’ mean that the LLM has access to the private tokens as well
1. Provable Privacy: DP-FUSION provides formal (ε, δ)-DP and Rényi DP guarantees, ensuring bounded leakage of sensitive information. 2. Improved Utility: DP-FUSION achieves significantly lower perplexity than prior DPI methods, balancing privacy and text quality. 3. Flexibility: DP-FUSION allows per-group privacy budgets, enabling tailored protection for different sensitive token types (e.g., names, dates).
1. My major concern is its Limited Scope. DP-FUSION only focuses on document privatization, potentially limiting applicability to other LLM use cases like real-time chat or tool-augmented inference. The proposed DP-FUSION pipeline seems to only consider the PII privacy and ignore the privacy that may be implicitly inferred from the document context. 2. The experiments of DP-FUSION only consider its paraphrase based on perplexity and the LLM judge. From my point of view, applying these paraphras
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Taxonomy
TopicsPrivacy-Preserving Technologies in Data · Artificial Intelligence in Healthcare and Education
