When Do Concepts Become Functionally Sufficient During Language-Model Training?

Interpretability is often treated as a tax on capability: language models are trained as opaque systems, then explained after the fact, with methods whose reliability is difficult to establish. In this work, we challenge this premise. Rather than reverse-engineering a model, we make interpretability a constraint of the training pipeline, optimized alongside the language modeling objective. Across three orders of magnitude of compute, on both autoregressive and diffusion language models, interpretability scales with capability rather than against it. Surprisingly, model representations become more disentangled and aligned with human-understandable concepts with scale. We instantiate the training-time recipe with Steerling-8B, a diffusion language model with a causal attention mask. For any group of generated tokens, Steerling-8B attributes the output to relevant input tokens, human-understandable concepts, and training data. This enables closed-loop intervention: diagnose an output through its concept or feature attribution, retrieve similar training data, and correct the behavior through concept steering without retraining. Steerling-8B remains competitive with open peer models trained on substantially 2-16x more compute, suggesting a different scaling paradigm: interpretability can be designed into training, and it improves with scale.

Concept formation in transformer language models is depth-extended, not a single-layer event: concepts emerge gradually across a contiguous region of the residual stream. Mechanistic interpretability methods identify the single layer of peak class separation -- the "best layer" -- capturing a snapshot rather than the process itself. We introduce the Concept Allocation Zone (CAZ): the depth interval within which a concept becomes measurably separable, the region allocated to its geometric expression. We formalize the CAZ through three layer-wise metrics (Separation, Concept Coherence, Concept Velocity) and derive principled boundary detection without manual layer sweeps. A CAZ is not a concept: it is the depth region within which the model organizes its geometry to make a concept separable. A single concept typically participates in multiple CAZes; multiple concepts may share one. Empirical validation across 34 models from 8 architectural families and 7 concepts reveals that the separation curve S(l) is frequently multimodal. A scored detector uncovers "gentle CAZes" -- subtle allocation regions invisible to standard peak detection but causally active in 93-100% of cases under ablation (16 of 34 models; 26 in the companion validation paper). The framework generates seven testable predictions; four yield clear verdicts (two not supported, one partially supported, one supported), one had its precondition invalidated by the data, and two are underpowered -- with cross-architecture alignment confirmed as depth-matched rather than monolithic under leave-one-concept-out cross-validation. Reference implementation: rosetta_tools v1.3.1 (doi:10.5281/zenodo.20361433).

Attributing language model outputs to their internal computations is an open problem in interpretability. Existing methods, which use causal interventions, gradients, or learnable masks, either are infeasibly expensive or struggle to identify actual causally-important internal computations. We propose framing attribution as the problem of identifying nested subsets of internal components which minimise a downstream loss. To learn this task, we introduce Matryoshka Attribution (MAttr), a mask learning method that parametrises the mask with a simple differentiable sigmoid top-$k$ operator. We supervise training over all sparsities simultaneously by randomising $k$ over training, resulting in a learned ordering of components by attribution score. MAttr achieves number 1 on the official leaderboard of the Mechanistic Interpretability Benchmark (Mueller et al., 2025); our method identifies sparse and task-transferrable circuits across varying circuit bases. As a practical application, we show that MAttr can be trained with reinforcement learning to identify weight changes responsible for downstream behaviours in LLM finetuning. We train MAttr on refusal judge scores and find that restoring $1\%$ of Llama 3.1 8B Instruct's weights to their base model state is sufficient to remove refusals while maintaining capabilities. We view MAttr as a successful formulation of interpretability into a learnable objective that we can tackle with gradient descent, and encourage future work along these lines.