More detail than you probably wanted: https://huggingface.co/blog/hf-bitsandbytes-integration
Also note that for a fixed memory (RAM) size, 4bit (even int4) is always superior, resulting in lower perplexity than 8bit.
E.g. LLaMA-13B int4 is far better/lower perplexity than LLaMA-7B fp8 while using the same amount of RAM.
So in this case one would load a byte which would have 2 4b data, and then you would have a 4b ADD or MAC which would operate on them.
If you don't have them then you need to sign/zero extend or convert the smaller bit-widths to 8/16/32b whichever is available.
https://github.com/ggerganov/llama.cpp/blob/master/examples/...
There's too many schemes right now with 4_0 and 5_1 really popular between LLM geeks.