There is a mathematical proof that binary representation is enough to capture the latent space. And in fact we don't even need to do "training" to get that representation.
The practical application we tried out for this algorithm was to create an alternate space for mpnet embeddings of Wikipedia paragraphs. Using Bit embedding we are able to represent 36 million passages of Wikipedia in 2GB.(https://gpt3experiments.substack.com/p/building-a-vector-dat...)