If in short, for many inference tasks the bottleneck is memory bandwidth. Suppose you have a machine with a memory bandwidth of 256 GB/s, and let's say you want to do inference for 4B model (model with 4 billion parameters). If you will load the model in BF16 format (16 bits), each forward pass (i.e. each token generated) will require roughly ~8 GB of memory bandwidth. So, 256/8 = 32 t/s, and that's the generation speed you will be strictly capped at even if your processing power is measured in exaFLOPS. But let's say now that you have decided to instead quantize the model and then run the quantized version. Suppose you have made a Q4_K_M version (4 bits + some weights will take more). Now each of your forward passes will take roughly 2-3 GB (rough approximations, reality is different) of memory bandwith (actually, it will be around 2 GB), and even in the worst case 256/3 = 85.3, while 256/2 = 128 t/s. Quants can reduce quality of the model and lower it's performance, but in most modern quantization methods those losses are usually negligible (although, of course, they're still present). So, as you can see, it can be concluded that quantization "widens" (it's not removing it fully) memory bottleneck while still preserving (not always though) acceptable quality.

(Sorry for my terrible English, it's not my native language)