Scaling Hierarchical Networks Hierarchical networks (H-Nets) deliver up to 3-5x compute efficiency gains over tokenized Transformers through learned tokenization, and a scaled 2-stage H-Net outperforms a matched open-source model using 10x less compute and data, according to new scaling-law results published by the H-Net research team behind the 2025 architecture. The team reports that H-Nets learn behaviors unseen in prior language models, including in-context tokenization, and that ongoing work extends the architecture to biology and vision. The results are presented as evidence that byte-level, end-to-end learning from raw data can unlock a further step change in scaling beyond tokenizer-dependent language models. Since Richard Sutton’s influential essay http://www.incompleteideas.net/IncIdeas/BitterLesson.html in 2019, the concept of the bitter lesson has guided much of modern progress in AI. This concept espouses general methods that leverage computation and learn with scale, as free of human-engineered priors as possible. Our interpretation is that, fundamentally, intelligence is about learning from raw data : autonomously finding patterns, building abstractions, and developing meaning from messy low-level inputs, ideally end-to-end and as data-efficiently as possible. As AI advances into complex domains such as science, robotics, and biology – where data is scarce and often difficult for humans to understand, let alone engineer for – internalizing this philosophy to develop more general learning algorithms is more important than ever. Language models are perhaps AI’s biggest success story today, and largely embrace the bitter lesson. Their abilities are largely attributable to scaling a few simple algorithms such as the Transformer architecture, next-token prediction, reinforcement learning, and test-time computation. However, they still rely on hand-crafted encoding steps such as tokenizers, which severely hinder their ability to learn end-to-end from the underlying data. Towards unlocking another step change of scaling, we believe that developing byte-level language models is foundational for AI progress – not just for improving standalone LLMs, but also as a litmus test for general learning methods. If we can’t even learn language well from characters and bytes, what right do we have to make progress on the next frontier? In 2025, we developed the concept of hierarchical networks H-Nets , which not only addressed tokenization in language models, but took a step toward even more general-purpose architectures that could learn from raw data across different modalities. We’ve since significantly improved the technology of H-Nets and are excited to share their capabilities In this series of two posts, we’ll dig into new results and discuss the implications. In this first post of a two-part series, we’ll explore scaling laws for H-Nets and their qualitative behaviors. 1. We produce a standard scaling ladder for tokenized Transformers, and show that carefully controlled 1-stage H-Nets provide meaningful compute efficiency gains up to 3-5x purely through learned tokenization. 2. We show empirical results from scaling up a more flexible 2-stage H-Net, where it outperforms a matched open-source model with extreme efficiency improvements 10x less compute and data . 3. We analyze the patterns that H-Nets learn, where they show a rich diversity of new behaviors previously unseen in language models, such as in-context tokenization. 4. We discuss how H-Nets go beyond language modeling, with ongoing research results in biology and vision, showing promise as a general architecture across modalities. In the next post https://www.cartesia.ai/blog/from-tokens-to-bytes-part-2 , we’ll do a deeper exploration of a larger range of models to understand better why H-Nets can be so much more efficient for language modeling. Altogether, our results provide evidence that H-Nets are a foundational architecture that truly aligns with the bitter lesson , learning meaning directly from raw data and significantly improving efficiency and scalability. This research agenda represents a major opportunity to advance how AI can learn from all data, and we couldn’t be more excited to push the frontier Hierarchical Networks H-Nets We introduced hierarchical networks paper https://arxiv.org/abs/2507.07955 , blog https://goombalab.github.io/blog/2025/hnet-past/ last year as a new end-to-end architecture that models multiple levels of abstraction in data, showing promise in language modeling and beyond. In a nutshell: The terminology was inspired by the existing concept of chunking