User interactions with language models vary due to static properties of the user (trait) and the specific context of the interaction (state). However, existing persona datasets (like PersonaChat, PANDORA etc.) capture only trait, and ignore the impact of state. We introduce Chameleon, a dataset of 5,001 contextual psychological profiles from 1,667 Reddit users, each measured across multiple contexts. Using the Chameleon dataset, we present three key findings. First, inspired by Latent State-Trait theory, we decompose variance and find that 74% is within-person (state) while only 26% is between-person (trait). Second, we find that LLMs are state-blind: they focus on trait only, and produce similar responses regardless of state. Third, we find that reward models react to user state, but inconsistently: different models favor or penalize the same users in opposite directions. We release Chameleon to support research on affective computing, personalized dialogue, and RLHF alignment.

Differentially private SGD (DPSGD) enables privacy-preserving training of language models, but often reduces utility, diversity, and linguistic quality. We introduce DPRefine, a three-phase method that initializes a model using data synthesis from a small pre-trained LM with rigorous filtering, applies DP finetuning on private data, and performs self-distillation to refine outputs. This approach significantly outperforms vanilla DPSGD, with AlpacaEval preferring DPRefine’s generations in 78.38% of cases across all datasets and metrics, while also demonstrating substantial improvements in lexical diversity, achieving 85.31% in MSTTR and 86.82% in Jaccard similarity. Our fine-grained analysis reveals that DPRefine reduces linguistic errors in generated text by 84%, mitigating grammar errors, spelling mistakes, and missing punctuation commonly associated with DPSGD. It also reduces inconsistencies present in non-private models, such as fabricated details and misattributed quotes. We find that small models like GPT-2 and T5 are effective for initialization and distillation, highlighting their potential in enabling scalable and efficient deployment of high-performing, privacy-preserving language models with improved linguistic quality and consistency.