Product Quantization (PQ) is a lossy vector compression algorithm based on orthogonal subspace decomposition; it divides a
D-dimensional space into
M orthogonal lower-dimensional subspaces (
d∗=D/M), runs K-Means clustering independently in each subspace to produce
K=256 centroids as a Codebook, and encodes each sub-vector into an 8-bit centroid index (1 Byte), compressing the entire vector into just
M bytes.