Decoupling the Benefits of Subword Tokenization for Language Model Training via Byte-level Simulation

In the standard LM training pipeline, subword tokenisation is applied as a preprocessing step. Subword segmental language modelling is an alternative paradigm in which tokenisation is learned during training, allowing the model to discover subword units that optimise its training objective. In this paper, we present our submission to the 2026 BabyLM Challenge, for which we develop two new subword segmental LMs: SubSegGPT and SubSegDeBERTa. SubSegGPT is a decoder-only model that learns tokenisation during autoregressive pretraining. SubSegDeBERTa is an encoder-based model that jointly learns to generate and tokenise masked words. We train both for the Strict and Strict-small tracks. Our top submission to Strict is SubSegDeBERTa, which achieves notable gains in zero-shot evaluation. Our top submission to Strict-small is SubSegGPT, which outperforms tokenisation-based baselines. Our results show that learnable subword tokenisation can improve sample-efficiency for BabyLM pretraining. We analyse the subword learning dynamics of our models and find that tokenisation gradually converges on subword units that balance morphological alignment and fine-grained segmentation.

Modern language models have historically relied on two dominant design choices: subword tokenization and autoregressive (AR) ordering. These design decisions bake in priors that dictate a model's learning. Recently, two alternative paradigms have challenged this: byte-level modeling, which bypasses static statistically-derived token vocabularies, and masked diffusion modeling (MDM), which conducts parallel, non-sequential generation. Their intersection represents a fully end-to-end modality-agnostic generative prototype; however, removing these structural priors incurs a significant computational cost. In this work, we investigate this cost through a compute-matched scaling study. Our results reveal that the performance penalty of byte modeling is not uniform; across scale, the scaling overhead of byte modeling is worse for MDM than for AR. We hypothesize that this disparity stems from context fragility: while AR's stable causal history allows models to naturally rediscover subword patterns, the MDM objective destroys the local contiguity required to efficiently resolve semantics from raw bytes. Our findings from controlled permutation experiments suggest that future modality-agnostic designs must incorporate alternative structural biases to maintain viable scaling trajectories in the byte regime.

Tokenization directly affects the inference efficiency of large language models, since fragmented tokenization increases sequence length and generation cost. Although longer, multi-word tokens can reduce fertility, naively adding them often degrades language model performance. We propose Thunder-Tok, a subword tokenizer that reduces fertility while preserving downstream performance. Thunder-Tok first constructs a large seed vocabulary from corpus substrings and filters structurally incomplete candidates, including invalid Unicode byte fragments and word-boundary violations. It then prunes the seed vocabulary using a likelihood-based token score derived from a uniform Jensen lower bound of the training-data probability. Experiments show that Thunder-Tok reduces fertility by approximately 25% in English and 9% in Korean compared with the standard BPE tokenizer while maintaining competitive performance.