Rank Is Not Capacity: Spectral Occupancy for Latent Graph Models

Model dimension ($d_{model}$) is a fundamental hyperparameter in transformer language models, yet its role in setting the geometric limits of feature representation remains under-explored. Grounded in the Linear Representation and Superposition Hypotheses - which propose that models encode features as near-orthogonal directions in latent space - we develop a framework for estimating how many such directions a model can support. We first establish the embedding matrix as a measurable proxy for near-orthogonality constraints across the latent space: the boundary between meaningful token relationships and incidental similarity in the pairwise cosine similarity distribution gives a concrete estimate of the model's accepted deviation $\varepsilon$ from perfect orthogonality. Applying this metric across dozens of open-source models reveals two classes: models with high $\varepsilon$ whose embeddings lack near-orthogonal structure, and models with low $\varepsilon$ that maintain it. We then show that the standard Johnson-Lindenstrauss lemma greatly underestimates the packing efficiency of trained representations, and derive an adjusted capacity formula in which the number of near-orthogonal directions depends on the ratio of vectors to dimensions ($k/d$) rather than the raw count - a single modification that cuts prediction error by two orders of magnitude with no extra parameters. Combining these results, we define representational capacity as an upper bound on the number of distinguishable directions available for features and embeddings in a model's latent space. Capacity is exponentially sensitive to $\varepsilon$, and larger models favor tighter orthogonality constraints over maximizing raw capacity - a pattern compatible with several explanations (a stability-capacity trade-off, a ceiling on usable concepts, or confounds with model scale) that we leave to future work.

Neural scaling laws describe predictable power-law relationships between model size, dataset size, compute, and performance. While these laws guide the development of modern foundation models, the mechanisms underpinning them remain poorly understood, in part due to the absence of scalable analysis tools. To close this gap, we introduce "spectral position": a scalable measure of which eigenvalues of the empirical neural tangent kernel (eNTK) currently drive loss reduction. Applying this measure to scaling experiments, we find that spectral position decreases throughout training: learning shifts from dominant eigenmodes into the spectral tail. Larger models reach further into the tail than smaller models, revealing a size-dependent capacity we call "spectral reach". This suggests why larger models achieve lower losses: they sustain learning on weak spectral signals inaccessible to smaller models. We further identify feature learning as a key enabler of spectral reach. It adaptively amplifies gradient magnitudes as learning advances, sustaining progress where frozen representations stall. This points to concrete interventions through architecture and optimizer design.

Kernelized graph methods - spectral clustering, diffusion maps, and sparse kernel -regression graphs - that use Gaussian kernels depend on the choice of Gaussian bandwidth sigma, which governs the spectral character of the local kernel operator. When sigma is too small, the kernel overestimates local complexity and treats each sample as an independent direction; when sigma is too large, the kernel collapses multiple directions together, the condition number diverges, and all geometric discrimination is lost. We propose a choice of scale to make the spectral complexity of the kernel consistent with the intrinsic complexity of the underlying manifold. We propose a per-node bandwidth criterion that operationalizes this principle by jointly matching the kernel's effective rank to the local intrinsic dimension estimated via minimum spanning tree, anchoring the search in the manifold-consistent log-log scaling regime. We evaluate SSL embeddings from six encoders on CIFAR-100, showing that adaptive bandwidth consistently improves leave-one-out (LOO) classification and label propagation (LP) accuracy over fixed-bandwidth methods and competing adaptive methods.