The short answer

GRPO is not PPO’s replacement. Its own authors call it “a variant of Proximal Policy Optimization (PPO)”. The change is narrow but consequential. PPO trains a separate value model to estimate the baseline. That model is “typically another model of comparable size as the policy model”. GRPO drops it. Instead, it samples a group of outputs for the same question, then uses their average reward as the baseline. The KL penalty moves too. PPO folds a per-token KL penalty into the reward, whereas GRPO adds the KL divergence directly to the loss. So one model disappears, the advantage becomes group-relative, and the KL term changes address.

Reinforcement learning fine-tuning has a memory problem, and GRPO is a direct answer to it. PPO holds four models in play at once. GRPO holds three, because one of them was doing a job a group of samples can do instead.

This guide leans on three papers, read directly. Shao and colleagues introduced GRPO in the DeepSeekMath paper. DeepSeek-R1 then used it at scale, and that paper now appears in Nature. Schulman and colleagues defined PPO back in 2017.

Diagram comparing PPO training with four models including a policy-sized value model against GRPO training with three models, using a group of sampled outputs as the baseline
PPO trains a policy-sized critic; GRPO replaces it with the average reward of a sampled group.

Why PPO Needed a Cheaper Variant

PPO has been the default for RL fine-tuning of language models for years. The DeepSeekMath paper calls it “an actor-critic RL algorithm”. PPO is, in its words, “widely used in the RL fine-tuning stage of LLMs”.

Actor-critic is the operative phrase there. The critic is a second network, and therefore it has to be trained.

That critic is expensive. The paper is blunt about the reason. That value function “is typically another model of comparable size as the policy model”.

As a result, “it brings a substantial memory and computational burden”. You are effectively training two large models at once.

There is a second, subtler complaint. In language-model training, “usually only the last token is assigned a reward score by the reward model”. That sparse signal “may complicate the training of a value function that is accurate at each token”. The critic is therefore both costly and hard to fit well.

How PPO Trains a Language Model

Schulman and colleagues introduced PPO in 2017 as “a new family of policy gradient methods for reinforcement learning”. Its appeal was practical. PPO keeps some benefits of trust region methods. Yet it is “much simpler to implement, more general, and have better sample complexity (empirically)”.

In the language-model setting, PPO runs with four models. The policy is the model being trained, a decoder-style generator of the kind our BERT vs GPT guide introduces. The reference model is usually the frozen starting point. Our RLHF vs DPO guide covers how that stage is set up.

A reward model scores outputs. Finally, the value model estimates the baseline.

The advantage in PPO comes from Generalized Advantage Estimation, computed from the rewards and that learned value function. Then a clipping hyper-parameter keeps each update close to the old policy. As a result, stability comes from clipping, and variance reduction comes from the critic.

How GRPO Changes the Recipe

GRPO removes one of those four models. The DeepSeekMath figure caption states it directly. GRPO “foregoes the value model, instead estimating the baseline from group scores”. So training resources drop.

The replacement is sampling. For each question, GRPO “samples a group of outputs” from the old policy. A reward model then scores every output in that group. Because you now have several scores for one question, you can compute a baseline from them.

The paper frames the swap plainly. GRPO “obviates the need for additional value function approximation as in PPO”. Instead it “uses the average reward of multiple sampled outputs” as the baseline. So the group does the critic’s job.

That trade is not free, though. You pay in rollouts, since every question now needs several generations rather than one. DeepSeek-R1-Zero sampled 16 outputs per question. Sampling temperature matters here too, a topic our temperature vs top-p guide covers.

GRPO vs PPO: Comparison Table

Infographic comparing GRPO and PPO on the value model, baseline source, KL penalty placement, rollouts per question and main cost
GRPO vs PPO at a glance: what is dropped, where the baseline comes from, and what it costs.

The table below lines up GRPO against PPO, field by field. Every value traces back to the three papers named above.

AspectPPOGRPO
RelationshipThe original algorithm, from 2017Called a variant of PPO by its own authors
Algorithm familyActor-criticActor-critic minus the critic
Value modelRequired, and trained alongside the policyDropped entirely
Size of that value modelTypically comparable to the policy modelNot applicable
Models held during trainingPolicy, reference, reward, valuePolicy, reference, reward
Where the baseline comes fromA learned value functionThe average reward across a sampled group
Advantage estimationGeneralized Advantage EstimationGroup rewards, normalised within the group
Generations per questionOne rollout is enoughA group of outputs, so several rollouts
Where the KL term sitsA per-token penalty inside the rewardAdded directly to the loss
KL estimatorThe log-ratio penalty at each tokenAn unbiased estimator, guaranteed positive
Reward modelRequiredStill required; only the value model went
ClippingYes, with an epsilon hyper-parameterYes, the same clipped ratio is kept
Reference modelKept, usually the initial SFT modelKept
Main stated benefitStability, and simpler than trust region methodsLower memory use, and fewer training resources
Main costMemory and compute for the criticExtra generations for every question
Fit with reward modelsScores one output at a timeAligns with the comparative nature of reward models

One row deserves a second look: the reward model. It survives in GRPO, and only the value model was removed. That single distinction is the one most summaries get wrong.

Where the Advantage Comes From

PPO estimates the advantage with a learned value function, one that must predict a return at every token. GRPO, by contrast, never learns such a function. It compares outputs against each other instead.

The arithmetic is simple. A group of outputs is sampled for one question, and a reward model scores each of them. Then “these rewards are normalized by subtracting the group average and dividing by the group standard deviation”.

An output’s advantage therefore answers a relative question: was this response better or worse than its siblings? That framing has a natural fit, the paper argues. After all, reward models are usually trained on comparisons between outputs for the same question.

The KL Penalty Changes Address

Both algorithms keep a reference model, and both penalise drift away from it. They apply that penalty in different places, though.

PPO puts it in the reward. The aim is to limit over-optimisation of the reward model. So the standard approach adds “a per-token KL penalty from a reference model in the reward at each token”. Then the reward itself is adjusted, before any advantage is computed.

GRPO moves it. The paper is explicit. GRPO works “instead of adding KL penalty in the reward”. It “regularizes by directly adding the KL divergence” to the loss.

The stated motive is to avoid complicating the advantage calculation. The estimator differs as well. GRPO uses an unbiased estimator of the KL divergence, one “which is guaranteed to be positive”. So the claim that GRPO abandons KL regularisation is simply wrong; the term merely lives somewhere else.

The Reward Model Does Not Disappear

This is the most common misreading of GRPO, so it deserves its own section. GRPO drops the value model. It does not drop the reward model.

Those two networks do unrelated jobs. A reward model scores how good an output is. A value model predicts expected future return, and PPO uses it as a baseline for variance reduction. Removing the second one therefore says nothing about the first.

In DeepSeekMath, a reward model still scores every sampled output. The paper even describes retraining it with a replay mechanism. Because of that, GRPO training runs with three models rather than four. Memory drops, yet the reward signal stays exactly where it was.

What DeepSeek-R1 Did Differently

Diagram showing that GRPO removes the value model while the reward model remains, and that DeepSeek-R1 separately replaced its neural reward model with rule-based rewards
GRPO removes the value model. The reward model stays; R1 replaced that separately, for a different reason.

DeepSeek-R1 made GRPO widely known, and it also introduced a separate change that often gets merged with it. The R1 paper describes GRPO as originally proposed “to simplify the training process”. It also aimed to “reduce the resource consumption” of PPO.

Then R1 went further on rewards. For reasoning tasks, the authors write, “we abstain from applying neural reward models” of either kind. Rule-based rewards took over, combining an accuracy reward with a format reward.

The reason was not memory. It was behavioural: “neural reward models are susceptible to reward hacking during large-scale reinforcement learning”. Instead, dropping the neural reward model was a robustness decision, quite separate from dropping the value model.

Note the scope carefully. That substitution applied to reasoning tasks, and for general data the team still used reward models to capture human preferences. DeepSeek-R1-Zero is also the variant that “relies exclusively on reinforcement learning without supervised fine-tuning”, not the shipped R1 model.

What the Paper Says RL Actually Improves

The DeepSeekMath authors ran an analysis that rarely survives into summaries. They measured Pass@K and Maj@K before and after RL, and the results were asymmetric.

Their finding: “RL enhances Maj@K’s performance but not Pass@K”. In plain terms, the model became more reliable at surfacing an answer it could already reach. It did not start reaching answers that were previously out of range.

The paper draws the conclusion itself. The gain is “attributed to boosting the correct response from TopK rather than the enhancement of fundamental capabilities”. So RL sharpened the output distribution, and that is a narrower claim than the one usually made for it.

Which One Fits Your Setup

Pick GRPO when memory is the binding constraint. Removing a policy-sized critic frees real capacity, which matters on the hardware our GPU vs TPU vs NPU guide covers. The same logic drives parameter-efficient methods in our LoRA vs QLoRA comparison.

GRPO also fits naturally when a question can be answered several ways and scored reliably. Verifiable domains suit it well, since sampling a group is only useful if the scores mean something.

PPO remains the reference point, though. It is the algorithm GRPO is a variant of. Its per-token value estimates also carry information a single group-level score does not. Generation cost is the other consideration, because a group of rollouts per question is not cheap either.

Interview Questions

The value model, also called the critic. The reward model stays in place.

It is typically another model of comparable size as the policy model. So it brings a substantial memory and computational burden.

No. It moves the term from the reward into the loss. It also uses an unbiased estimator that is guaranteed to be positive.

Its authors call it a variant of PPO. It keeps the clipped ratio and the reference model, then changes the baseline and the KL placement.

Generations. Every question needs a group of sampled outputs, whereas PPO can work from one rollout.

Frequently Asked Questions

PPO learns a separate value model to supply the baseline. GRPO drops it. Instead it estimates the baseline from the average reward of a group sampled for the same question.

Its own authors describe GRPO as a variant of Proximal Policy Optimization, not as a separate algorithm. It keeps PPO’s clipped objective and reference model.

No. GRPO removes the value model, which is a different network. A reward model still scores every sampled output.

It scores a group of outputs for one question. Then it normalises those rewards by subtracting the group average and dividing by the group standard deviation.

Into the loss. PPO instead adds a per-token KL penalty from a reference model inside the reward at each token.

Because neural reward models are susceptible to reward hacking during large-scale reinforcement learning. That choice is separate from GRPO dropping the value model.

It uses less memory, since a policy-sized critic disappears. It costs more generation, because each question needs a group of sampled outputs.

The DeepSeekMath authors found RL enhanced Maj@K but not Pass@K. They attributed the gain to boosting the correct response from TopK rather than the enhancement of fundamental capabilities.

Wrapping Up

One sentence in the DeepSeekMath abstract settles the framing: GRPO is a variant of PPO. It keeps the clipped objective, the reference model and the reward model, then changes three things. The critic goes, the baseline becomes group-relative, and the KL term moves into the loss.

Remember which model actually disappeared, because that is where most explanations slip. The value model went, and the reward model stayed. DeepSeek-R1 later replaced its neural reward model for reasoning tasks too, yet that was a separate decision about reward hacking.

Related reading on DiffStudy:

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By Arun Kumar

Full Stack Developer with a BE in Computer Science, working with React, Next.js, Node.js, MongoDB, and AI/ML tools. Founder of DiffStudy — built to help CS students ace GATE and university exams, and keep developers up to date across AI, cloud, system design, web development, and every field of computer science. Every article is written from real hands-on experience, not just theory.

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