diff --git a/trlx/models/modeling_nemo_ppo.py b/trlx/models/modeling_nemo_ppo.py
index 5ad044130..4291dcff5 100644
--- a/trlx/models/modeling_nemo_ppo.py
+++ b/trlx/models/modeling_nemo_ppo.py
@@ -52,7 +52,7 @@
 from trlx.data.ppo_types import PPORLBatch
 from trlx.models.modeling_ppo import PPOConfig
 from trlx.utils import to_device, tree_map
-from trlx.utils.modeling import logprobs_of_labels, whiten
+from trlx.utils.modeling import logprobs_of_next_labels, whiten
 
 # Track a per dp rank RNG to sample different rollouts
 # per dp rank
@@ -993,7 +993,7 @@ def loss_func(model_output):
                 start = batch.query_tensors.shape[1]
                 end = start + response_length
 
-                label_logprobs = logprobs_of_labels(logits[:, :-1, :], inputs[:, 1:])
+                label_logprobs = logprobs_of_next_labels(logits, inputs)
                 label_logprobs = label_logprobs[:, start:end]
 
                 advantages, returns = self.ppo_config.get_advantages_and_returns(
@@ -1079,11 +1079,11 @@ def ppo_postprocess(model_output):
                 # to save memory
 
                 if run_policy_model and compute_logprobs:
-                    logprobs = logprobs_of_labels(logits[:, :-1, :], tokens[:, 1:])
+                    logprobs = logprobs_of_next_labels(logits, tokens)
                     return logprobs, dict(logprobs=logprobs, values=values)
 
                 if run_reference_model and compute_logprobs:
-                    ref_logprobs = logprobs_of_labels(ref_logits[:, :-1, :], tokens[:, 1:])
+                    ref_logprobs = logprobs_of_next_labels(ref_logits, tokens)
                     return ref_logprobs, dict(ref_logprobs=ref_logprobs)
 
                 return logits, {"logits": logits, "values": values, "ref_logits": ref_logits}
diff --git a/trlx/trainer/accelerate_ppo_trainer.py b/trlx/trainer/accelerate_ppo_trainer.py
index 1a4801aaf..e4d09902e 100644
--- a/trlx/trainer/accelerate_ppo_trainer.py
+++ b/trlx/trainer/accelerate_ppo_trainer.py
@@ -27,7 +27,7 @@
 from trlx.trainer import register_trainer
 from trlx.trainer.accelerate_base_trainer import AccelerateRLTrainer
 from trlx.utils import Clock, infinite_dataloader
-from trlx.utils.modeling import RunningMoments, gather_dict, logprobs_of_labels
+from trlx.utils.modeling import RunningMoments, gather_dict, logprobs_of_next_labels
 
 logger = logging.get_logger(__name__)
 
@@ -163,7 +163,7 @@ def loss(self, batch: PPORLBatch) -> Tuple[float, Dict[str, Any]]:
 
             logits = outputs.logits
             values_pred = outputs.value
-            logprobs = logprobs_of_labels(logits[:, :-1, :], decoder_input_ids[:, 1:])
+            logprobs = logprobs_of_next_labels(logits, decoder_input_ids)
             mask = decoder_input_ids.ne(self.tokenizer.pad_token_id).long().to(self.accelerator.device)
             start = 0
             end = start + response_length
@@ -181,7 +181,7 @@ def loss(self, batch: PPORLBatch) -> Tuple[float, Dict[str, Any]]:
             logits = outputs.logits
             values_pred = outputs.value
             values_pred = values_pred[:, :-1]
-            logprobs = logprobs_of_labels(logits[:, :-1, :], tokens[:, 1:])
+            logprobs = logprobs_of_next_labels(logits, tokens)
 
             start = query_tensors.shape[1] - 1
             end = start + response_length
@@ -438,12 +438,12 @@ def make_experience(self, num_rollouts: int = 1024, iter_count: int = 0):  # noq
                         ref_logits = ref_logits.to(device)
 
             if self.config.model.model_arch_type == "seq2seq":
-                logprobs = logprobs_of_labels(logits[:, :-1, :], sample_outputs[:, 1:])
-                ref_logprobs = logprobs_of_labels(ref_logits[:, :-1, :], sample_outputs[:, 1:])
+                logprobs = logprobs_of_next_labels(logits, sample_outputs)
+                ref_logprobs = logprobs_of_next_labels(ref_logits, sample_outputs)
             else:
                 # NOTE: logprob[i] is (log)prob at which all_token[i+1] was sampled
-                logprobs = logprobs_of_labels(logits[:, :-1, :], all_tokens[:, 1:])
-                ref_logprobs = logprobs_of_labels(ref_logits[:, :-1, :], all_tokens[:, 1:])
+                logprobs = logprobs_of_next_labels(logits, all_tokens)
+                ref_logprobs = logprobs_of_next_labels(ref_logits, all_tokens)
 
             n_samples: int = samples.shape[0]
 
diff --git a/trlx/utils/modeling.py b/trlx/utils/modeling.py
index aa9bba525..dbeefbc33 100644
--- a/trlx/utils/modeling.py
+++ b/trlx/utils/modeling.py
@@ -219,6 +219,13 @@ def logprobs_of_labels(logits, labels):
     return logprobs_labels.squeeze(-1)
 
 
+def logprobs_of_next_labels(logits, labels):
+    """Log probabilities of the next labels, optimized for memory and speed"""
+    logprobs = F.log_softmax(logits, dim=-1)
+    logprobs_labels = torch.gather(logprobs, dim=-1, index=labels[..., 1:, None])
+    return logprobs_labels.squeeze(-1)
+
+
 def flatten_dict(
     d: Union[dict, MutableMapping],
     parent_key: str = "",