Roy Schwartz

Language models process and generate text sequentially in token units, and the tokenizer determines how much text each inference step covers. Under standard tokenization, a short English phrase such as "On the table." is usually produced as four separate predictions for the preposition (On), article (the), noun (table), and punctuation (.), where each consumes a sequence position and adds inference cost. We introduce CoBPE, a compositional tokenization approach that represents such phrases as a lexical base token (table) attached with a small set of reusable surface modifiers, composed in embedding space at input and predicted jointly at output. In controlled pretraining from scratch at 780M and 1.3B scales, CoBPE shortens sequences by 30% and improves average downstream performance by 1.2 points relative to standard BPE under matched training compute. Our results suggest that part of what is now expressed through token sequences can instead be modeled through structured representations, opening a broad design space for more token-efficient and capable language models.

Large language models are prone to hallucinating factually incorrect statements. A key source of these errors is exposure to new factual information through supervised fine-tuning (SFT), which can increase hallucinations w.r.t. knowledge acquired during pre-training. Since these errors arise as a by-product of knowledge degradation, we explore whether established continual learning tools can mitigate them. We propose a *self-distillation*–based SFT method that facilitates effective factual learning while minimizing hallucinations w.r.t. pre-existing knowledge by regularizing output-distribution drift. We also show that when new knowledge acquisition is unnecessary, suppressing factual plasticity by freezing parameter groups preserves task performance while reducing hallucinations. Lastly, we investigate the mechanism, contrasting capacity limitations, behavior cloning, and localized interference. Our experiments show that a main driver is interference among overlapping semantic representations, which self-distillation mitigates and an associative-memory model explains: forgetting grows with the overlap between new and stored facts.