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Madhuopen lab
Outcome School · Training and alignment14 min read

by Amit Shekhar · 27 July 2026

How does fine-tuning work?

How Fine-tuning works. We will also see why we need it, how it works step by step with a simple example, how full fine-tuning and LoRA differ and when to use which one based on our use case.

2,611 words#llm#ai#machine-learning4 recall cards

How does fine-tuning work?
Read on Outcome School ↗then come back to lock it in
Before you read, guess

What is the starting point for fine-tuning?

Ten seconds, a guess, then read — a wrong guess still makes the answer stick.

What this article covers

  1. What is Fine-tuning?
  2. Why do we need Fine-tuning?
  3. How does Fine-tuning work step by step?
  4. A simple worked example with numbers
  5. Full Fine-tuning vs LoRA
  6. When to use Fine-tuning
  7. Tips before we Fine-tune
  8. Summary

The article lives on outcomeschool.com. Read it there, then come back: the tutor in the margin has read it and will answer questions, and the questions below check what stayed.

Before you go

In one sentence, what was this chapter about?

From memory, without scrolling up. Writing it is what makes it yours; the grade is only to show you what you had.

How sure?