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29.01.2026 • 05:05 Research & Innovation

Researchers Identify Phase Transition Underlying Multi‑Step Reasoning in Large Transformer Models

Global: Researchers Identify Phase Transition Underlying Multi‑Step Reasoning in Large Transformer Models

According to a new arXiv preprint, a team of researchers has examined how multi‑step reasoning emerges in deep Transformer language models by applying concepts from geometry and statistical physics. The study focuses on models ranging from 1.5 billion to 30 billion parameters and seeks to explain why larger models exhibit more coherent, stepwise problem‑solving capabilities.

Geometric Framework and Covariance Analysis

The authors model the hidden‑state trajectory of a Transformer as a flow on an implicit Riemannian manifold. By computing the layerwise covariance matrix $C^{(ell)}=mathbb{E}[h^{(ell)}h^{(ell)top}]$ and examining deviations from random‑matrix bulk behavior, they derive a spectral portrait of activations across layers.

Order Parameter and Critical Depth

Introducing an order parameter based on sparsity and localization, $Omega(h)=1-frac{|h|_{1}}{sqrt{d},|h|_{2}}$, the researchers observe a sharp discontinuity near a normalized depth $gamma_{c}approx0.42$ in sufficiently large models. This discontinuity signals a phase transition that reduces the effective dimensionality of representations.

Low‑Entropy Regime and Transient Class Objects

Beyond the critical depth, the model enters a low‑entropy regime characterized by a collapse of the spectral tail. In this regime, the study reports the spontaneous formation of reusable, object‑like structures in representation space, which the authors term Transient Class Objects (TCOs).

Theoretical Connections to Renormalization

The forward pass is formalized as a discrete coarse‑graining map, allowing the authors to relate the emergence of stable “concept basins” to fixed points of a renormalization‑like dynamical system. They further provide conditions linking logical separability of concepts to the observed spectral decay.

Empirical Validation Across Model Families

Layerwise probing experiments on multiple open‑weight model families corroborate the predicted signatures, including the dimensionality reduction, spectral tail collapse, and presence of TCOs, thereby supporting the theoretical framework.

Implications for Model Design

The findings suggest that multi‑step reasoning may arise from a geometric phase transition rather than solely from increased parameter count. Understanding this transition could inform more efficient architecture designs that deliberately steer models into the low‑entropy, reasoning‑friendly regime.

This report is based on information from arXiv, licensed under Academic Preprint / Open Access. Based on the abstract of the research paper. Full text available via ArXiv.

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