Why LLMs Fail at the Edges: Tokenization, Coordination, and the Case for Fewer Hidden Layers

Mark Erdmann

Hatched by Mark Erdmann

Jun 28, 2026

9 min read

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The strange fact about modern AI: its biggest weaknesses often come from the smallest abstractions

What if the reason a language model sounds brilliant one moment and strangely brittle the next is not the model itself, but the invisible machinery underneath it? That possibility is more unsettling than it first appears. We tend to imagine that intelligence scales by adding more parameters, more data, or more agents, yet many of the most frustrating failures come from places that are easy to ignore: how text is split into tokens, and how separate systems are forced to cooperate.

That is the deeper tension connecting today’s frontier AI. On one side, we are discovering that collective intelligence can outperform individual models when their outputs are layered together. On the other side, we are being reminded that the entire stack may be built on a surprisingly fragile representational trick: tokenization. The combination points to a provocative thesis: AI progress is not just about making models larger or more collaborative, but about removing unnecessary boundaries, whether between words or between models.

In other words, the future may belong less to systems that stack more abstractions on top of language, and more to systems that learn where abstractions themselves are the source of error.

The hidden cost of chopping language into pieces

Tokenization is one of those engineering decisions that becomes invisible precisely because it works so often. A model does not read raw text as humans do. It reads tokens, fragments of words, punctuation, and whitespace patterns. This is efficient, but it creates an odd mismatch between human language and machine representation. The model is never fully dealing with a sentence, a word, or a thought. It is dealing with a sequence of pieces that only approximate those things.

That approximation leaks everywhere. A rare name may be split awkwardly. A single concept may occupy multiple tokens in one language and fewer in another. A prompt that looks simple to a person may be much harder for the model because the meaningful boundary is not where the human thinks it is. This is why tokenization can cause what feels like bizarre behavior: not because the model is bad at language in the abstract, but because the model is forced to reason through a representation that sometimes distorts language at the seams.

A useful analogy is to imagine a musical score that has been chopped into arbitrary measures before an orchestra performs it. If the cut points align with phrases, everything sounds natural. If they land in the middle of a motif, the performance becomes brittle in ways that are hard to predict. Tokenization is a bit like that. It is not merely a storage format. It is a hidden editorial layer that influences what the model can easily see, compare, and continue.

The representation you choose is not a neutral container for intelligence. It is part of the intelligence itself.

This is why the call to remove tokenization entirely is so radical. It is not a complaint about a minor preprocessing step. It is a challenge to the idea that language should be broken into discrete symbols before a model can understand it. If tokenization introduces artifacts, then some of the weirdness of LLMs may not be emergent intelligence at all. It may be a structural side effect.

More agents can help, but only if the system learns how to hear itself

At the same time, a different trend is gaining momentum: instead of relying on a single model, we can combine multiple models into a Mixture of Agents. Each agent sees the outputs of the others, and each layer of the system uses the previous layer as context. The result can be striking. Multiple models, especially when diverse in style or strength, can outperform a lone model by catching errors, broadening coverage, and refining answers through iterative comparison.

This looks, at first glance, like a pure scaling story. If one model is good, several should be better. Yet the deeper insight is not about quantity. It is about coordination under uncertainty. A single model may generate a fluent but incomplete response. A layered ensemble can act more like a disciplined editorial board, with one agent surfacing missed constraints, another proposing alternative interpretations, and a third consolidating the best answer.

Think of it as a debate club inside a newsroom. One reporter drafts the story, another checks for factual gaps, a third sharpens the lead, and an editor tries to preserve coherence. The value is not just that there are more voices. The value is that the system creates a mechanism for self-correction without central omniscience.

But coordination has a cost. The more layers you add, the more you risk compounding noise, copying mistakes, or privileging consensus over truth. A model can become better at sounding careful while remaining conceptually shallow. This is where the connection to tokenization becomes unexpectedly important. Both tokenization and multi-agent architectures insert boundaries into the path from input to output. In both cases, those boundaries can help structure computation, but they can also distort it.

The real problem may be not complexity, but the wrong kind of complexity

These two ideas seem different, but they are joined by a common question: Where should the system be allowed to break the problem apart, and where should it remain continuous? Tokenization breaks language into chunks. MoA breaks reasoning into agents. Both strategies introduce modularity. Both can improve performance. Both can also create artifacts that are invisible until the system fails in a surprising way.

This suggests a framework for thinking about AI progress: not all complexity is equal. There is productive complexity, which helps a system decompose a task into manageable subproblems, and accidental complexity, which exists because of legacy constraints or convenience. Tokenization may belong partly to the second category. It helps current systems operate, but it can also distort the very object they are meant to understand. Likewise, a multi-agent stack may create productive diversity, but it can also become a maze of recursive summarization in which each layer loses detail.

A simple example makes this concrete. Suppose you ask a model to analyze a legal clause. If tokenization splits an important phrase in a way that weakens its salience, the model may miss the clause’s force. If you then place that model inside a multi-agent system, another agent may only ever see the weakened interpretation, not the original nuance. One hidden abstraction error becomes many. The ensemble is now working from a degraded intermediate representation, and every additional layer risks laundering that error into apparent confidence.

This is the key lesson: more intelligence layers do not automatically compensate for poorer representational layers. In fact, they can amplify the damage. Collaboration is powerful only when the system shares a sufficiently faithful view of the underlying problem.

A better mental model: language as a stream, intelligence as a negotiation

If tokenization and agent layering both introduce boundaries, then the next frontier may be systems that treat language and reasoning more like continuous negotiation than discrete assembly. The goal is not merely to make models bigger or ensembles deeper. The goal is to reduce the number of places where meaning has to be reconstructed from fragments.

Here is a helpful mental model:

1. Representation layer: How does the system perceive the input? If this layer is coarse or unnatural, downstream reasoning is handicapped.

2. Deliberation layer: How do multiple reasoning processes compare, contest, and refine candidate answers? If this layer lacks structured disagreement, it can collapse into redundancy.

3. Integration layer: How are partial insights merged without losing detail? If this layer overcompresses, the final answer may sound polished but be less true.

This model reveals why the most impressive systems are not simply those that maximize every layer. They are the systems that minimize mismatch between layers. A high performing MoA architecture is not just a pile of models. It is a choreography of views. But if the views themselves are distorted by tokenization artifacts, the choreography is built on shaky ground.

That is why the dream of removing tokenization entirely is so appealing. It would not merely simplify preprocessing. It would reduce the number of places where the machine has to guess what counts as a meaningful unit. Fewer guesses means fewer brittle edges. Similarly, multi-agent reasoning works best when agents are not just passing around compressed summaries, but participating in a richer exchange that preserves uncertainty and nuance.

The practical lesson for builders: optimize the seams, not just the core

There is a tendency in AI development to focus on the obvious core: bigger models, more data, more alignment, more compute. Those matter. But the harder truth is that many failures arise at the seams. A model can be brilliant in isolation and still fail because its input representation is awkward or its cooperative structure is too lossy.

For builders, this means the relevant question is not just, “How do I get the model to answer better?” It is also, “Where does meaning get broken or flattened before the answer is produced?” That question applies to both tokenization and orchestration.

Here are three concrete examples:

  • A customer support agent may misunderstand a user not because of weak reasoning, but because a crucial product code is split across tokens in a way that makes it less salient.
  • A research assistant may fail not because it cannot synthesize papers, but because it receives previous agent outputs as flattened summaries rather than preserved evidence.
  • A coding assistant may produce elegant but incorrect code because it lost the syntactic or semantic boundary that mattered most in the prompt.

These are not just engineering glitches. They are reminders that intelligence is often a boundary management problem. The system must decide what to compress, what to preserve, and where to let multiple perspectives coexist.

The strongest AI systems may not be the ones that think the most. They may be the ones that lose the least while thinking.

Key Takeaways

  1. Look for hidden abstractions. If a model behaves oddly, first ask where meaning is being chopped, compressed, or re-encoded before reasoning begins.
  2. Treat collaboration as a precision tool, not a brute-force multiplier. Multi-agent systems work best when each layer adds distinct evidence or perspective, not just another paraphrase.
  3. Watch for error laundering. A small representational mistake can be amplified when one model’s weak interpretation becomes another model’s input.
  4. Optimize the seams. Improve not only model size and training, but also the interfaces where language becomes tokens and outputs become shared context.
  5. Prefer faithful exchange over premature summary. When building agentic systems, preserve uncertainty and detail as long as possible before compressing.

The deeper conclusion: intelligence may be less about adding parts than removing distortions

The most interesting convergence here is not that tokenization and mixtures of agents both matter. It is that they expose the same design principle from opposite directions. Tokenization reveals the danger of forcing language into too rigid a form. Multi-agent systems reveal the power of letting multiple imperfect views refine one another. Together they suggest that progress in AI may come from a paradox: build more collaborative systems, but reduce the number of artificial boundaries that collaboration has to cross.

That is a very different picture from the usual “scale solves everything” narrative. It implies that some of the next gains will come from eliminating representational friction, not merely adding capacity. If language models continue to improve, the breakthrough may not look like a grander mind. It may look like a system that understands more because it is interrupted less.

In the end, the deepest question is not whether machines can reason, or whether many machines can reason together. It is whether we can design systems that preserve the continuity of meaning while still benefiting from modular computation. The answer may determine not just how good AI becomes, but what kind of intelligence it can ever be.

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