Recent speech language models rely on encoders that are optimized separately from autoregressive models. Since these encoders are unaware of the downstream objectives, the extracted representations may not be optimal for downstream tasks. To address this limitation, we introduce a discrete latent variable model on mel spectrograms that jointly optimizes the encoder and the speech language model. Joint optimization not only brings improvements over codec-based and other mel-spectrogram-based baselines on zero-shot Text-to-Speech (TTS) and Speech-to-Text (STT) tasks, but also effectively alleviates common issues in autoregressive mel spectrogram modeling, such as prolonged silence generation and word omissions. Samples are available at the [demo page](https://anonymous29300909.github.io/anonymous2930-demo/).

In this work, we extend the instruction-tuned Llama-2 model with end-to-end general-purpose speech processing and reasoning abilities while maintaining the wide range of original LLM capabilities, without using any carefully curated paired data. The resulting end-to-end model, named AudioChatLlama, can utilize audio prompts as a replacement for text and sustain a conversation. Such a model also has extended cross-modal capabilities such as being able to perform spoken question answering (QA), speech translation, and audio summarization amongst many other closed and open-domain tasks. This is unlike prior approaches in speech, in which LLMs are extended to handle audio for a limited number of pre-designated tasks. On both synthesized and recorded speech QA test sets, evaluations show that our end-to-end approach is on par with or outperforms cascaded systems (speech recognizer + LLM) in terms of modelling the response to a prompt. Furthermore, unlike cascades, our approach can interchange text and audio modalities and intrinsically utilize prior context in a conversation to provide better results.