Compress the Context, Keep the Commitments: A Formal Framework for Verifiable LLM Context Compression

Large Language Models (LLMs) have a bounded context window. The context window is the maximum input size an LLM can consume for a single inference. AI agents rely on a process called context compaction to fit their state within the context window when calling an LLM. Despite its ubiquity, context compaction has received essentially no formal analysis. In this paper, we initiate a formal study of context compaction. We first introduce a framework consisting of two games that capture the two algorithmic strategies for context compaction used by contemporary AI agents in practice. The Context Selection Game models context compaction algorithms that select a subset of an agent's accumulated state to retain. The Context Generation Game models context compaction algorithms that summarize an agent's state by an arbitrary message of bounded length. We then prove an equivalence between the Context Generation Game and one-way communication complexity. The minimum context compaction budget for answering a set of queries within a target error is equal to the one-way communication complexity of the induced communication problem at the same error. Known bounds from communication complexity therefore transfer directly to context compaction. We also show that the Context Selection Game corresponds to a restricted class of one-way communication protocols. Any gap between selection and generation is therefore a gap between two classes of communication protocols. We prove that there exists a set of queries for which generation needs strictly less budget than selection. The equivalence between the Context Generation Game and one-way communication also lets us measure how well a deployed context compaction algorithm performs on a query relative to the optimal strategy. As an example, we present a case study that evaluates Anthropic's context compaction endpoint on set membership queries.

Compressed context is usually carried as human-readable text or as rendered images that must be decoded, even when its consumer is a language model. We introduce LatentPress, which writes conversational histories and long documents into a third representation: continuous memory tokens that a frozen decoder reads directly through its input-embedding interface, with no text reconstruction at inference. A small reader-matched writer compresses $4$-$16\times$ while training only an adapter (4.2M-26.2M parameters, $\sim\!0.1\%$ of the decoder). On LongMemEval, LatentPress reaches $0.504$ accuracy at $7.70\times$ compression versus $0.490$ for uncompressed evidence, outperforming text summaries (0.184) and OCR-based compression (0.426 to 0.312). On LongBench-QA, in-domain writers match or exceed raw-context reading at $4$-$8\times$ compression, while $16\times$ trails raw. Writing takes 43ms per conversation, roughly an order of magnitude faster than text summarization or OCR reconstruction, and reading is $5$-$9\times$ faster than raw context or cached OCR. We validate the interface under two transfer settings, zero-shot from UltraChat to LongMemEval memory QA and from LongMemEval-derived QA to unseen LongBench document domains, establishing direct soft tokens as a practical machine-facing context interface beyond text and vision. The implementation of the experiments could be found at: https://github.com/HJSang/LatentPress .

Context compression aims to shorten long context inputs with minimal information loss for LLM inference acceleration. While existing methods have shown promise, they typically rely on complex compression modules or compression-specific training, leaving the intrinsic capabilities of LLMs underexplored. In contrast, this work reveals that a thinking model itself can naturally compress long contexts by organizing task-relevant information. We thus derive Thinking as Compression (TaC), a new compression paradigm that treats thinking itself as compressed context. Without relying on specific dedicated compressor, TaC directly prompts the thinking model to generate thinking traces as the shortened context, already outperforming most representative compression methods. Further, given that raw thinking output may struggle with budget control and shortcut behaviors, we introduce Thinking as Compression Constrained (TaC-C), leveraging a simple reward-driven optimization framework to elicit intrinsic thinking as compact and controllable compressed context. Experiments across four long-context QA benchmarks demonstrate that TaC-C consistently outperforms existing baselines. At 4x and 8x compression ratios, it surpasses the strongest competitor by 17.4% and 23.4% in average F1, and by 15.7% and 21.7% in average Exact Match Score (EM), respectively.