Despite their remarkable progress across diverse domains, Large Language Models (LLMs) consistently fail at simple character-level tasks, such as counting letters in words, due to a fundamental limitation: tokenization. In this work, we frame this limitation as a problem of low mutual information and analyze it in terms of concept emergence. Using a suite of 19 synthetic tasks that isolate character-level reasoning in a controlled setting, we show that such capabilities emerge suddenly and only late in training. We find that percolation-based models of concept emergence explain these patterns, suggesting that learning character composition is not fundamentally different from learning commonsense knowledge. To address this bottleneck, we propose a lightweight architectural modification that significantly improves character-level reasoning while preserving the inductive advantages of subword models. Together, our results bridge low-level perceptual gaps in tokenized LMs and provide a principled framework for understanding and mitigating their structural blind spots. We make our code publicly available.

Large language models (LLMs) have demonstrated remarkable performances on a wide range of natural language tasks. Yet, LLMs' successes have been largely restricted to tasks concerning words, sentences, or documents, and it remains questionable how much they understand the minimal units of text, namely characters. In this paper, we examine contemporary LLMs regarding their ability to understand character composition of words, and show that most of them fail to reliably carry out even the simple tasks that can be handled by humans with perfection. We analyze their behaviors with comparison to token level performances, and discuss the potential directions for future research.

Standard pretrained language models operate on sequences of subword tokens without direct access to the characters that compose each token's string representation. We probe the embedding layer of pretrained language models and show that models learn the internal character composition of whole word and subword tokens to a surprising extent, without ever seeing the characters coupled with the tokens. Our results show that the embedding layer of RoBERTa holds enough information to accurately spell up to a third of the vocabulary and reach high average character ngram overlap on all token types. We further test whether enriching subword models with additional character information can improve language modeling, and observe that this method has a near-identical learning curve as training without spelling-based enrichment. Overall, our results suggest that language modeling objectives incentivize the model to implicitly learn some notion of spelling, and that explicitly teaching the model how to spell does not enhance its performance on such tasks.