Abstract: Large language models (LLMs) exhibit coherent reasoning, long-range contextual integration, and abrupt failures such as hallucination, yet the internal principles governing these behaviors remain poorly understood. Existing interpretability approaches typically focus
on isolated components, including attention patterns, neuron circuits, or probing signals, and therefore provide limited insight into how semantic meaning evolves over the course of inference. This work proposes that Transformer-based language models can be productively interpreted through a continuous semantic perspective, in which internal representations evolve along structured trajectories in a latent space. We articulate this interpretation through the Coherence–Diffusion Dynamics (CDD) framework, which models semantic evolution as the interaction of coherence-restoring tendencies and stochastic variability. Within this framework, we introduce an effective instability potential serving as an interpretive proxy for semantic coherence, a coherence operator governing stabilizing dynamics, a diffusion term capturing stochastic variability, and an interpretation of dynamic sparsity capturing the apparent contraction of effective semantic degrees of freedom along inference trajectories. These constructs suggest qualitative, empirically testable implications regarding stabilization, regime shifts associated with hallucination, and the functional irrelevance of low-impact components. We evaluate these implications through controlled experiments on Transformer language models, showing broad alignment between observed behavior and
the qualitative predictions of the CDD interpretation. Taken together, this work provides a coherent and dynamically grounded account of semantic evolution in LLMs, providing a principled lens for interpreting coherence, variability, sparsity, and instability without departing from the discrete computational structure of Transformer architectures.
Submission Type: Long submission (more than 12 pages of main content)
Assigned Action Editor: ~Surbhi_Goel1
Submission Number: 6852
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