Earlier quoted context omitted.
As far as I understand it does if you quantify the K/V store as well (the context). And that's pretty standard now because it can increase maximum context size a lot.
It is available in most inference engines, but I wouldn't call it in standard use, as it can degrade quality tremendously.
And q8_0 already halves the memory usage compared to fp16.
One of the ollama Devs called the quality impact negligible at q8_0: https://smcleod.net/2024/12/bringing-k/v-context-quantisatio...
But perhaps quantifying the KV cache does not scale as gracefully as the model itself?