ICML2026

SoftBinary Coding: A New Information-Theoretic Paradigm for Neural Compression via Fast Channel Simulation

Ezgi Ozyilkan, Sharang Sriramu, Elza Erkip, Aaron Wagner, Jona Ballé

Abstract

Neural compression is currently dominated by Nonlinear Transform Coding (NTC), which maps data to real-valued latents via continuous transforms. Despite its success, NTC suffers from train-test mismatch due to non-differentiable quantization, a "smoothness bias" inherent in continuous transforms that precludes optimality for certain sources, and a loss of "shaping gain" due to its use of scalar quantization. We propose SoftBinary Coding (SBC), an end-to-end learning paradigm that bypasses these limitations by using a stochastic binary latent space. In the spirit of vector quantization, SBC employs discrete representations and compresses them through a novel fast binary channel simulation scheme, for which we provide a proof of rate optimality. Experimental gains on information-theoretic sources address NTC's limitations both theoretically and practically, establishing discrete binary structures as a viable path toward reaching optimal rate–distortion bounds. Surprisingly, SBC also achieves state-of-the-art performance on vector quantization of i.i.d. sources, exceeding Trellis Coded Quantization of the Gaussian source.