Abstract
Language models for molecular design have scaled to hundreds of millions of parameters, yet how they learn chemical grammar is poorly understood. We train SMolLM, a 53K-parameter weight-shared transformer, to generate novel SMILES with 95% validity on the ZINC-250K drug-like-molecule benchmark, outperforming a standard GPT with 10 times more parameters. Mechanistically, the same block resolves SMILES constraints across passes in a fixed order: brackets first, rings second, and valence last, as shown by error classification, linear probing, and sparse autoencoders. A systematic ablation across attention heads and passes further localizes the first bracket-matching step to a single attention head. Together, these results yield a compact, mechanistically interpretable molecular generator and a testbed for studying iterative computation in formal-language domains.
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