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SSRN 2025October 9, 2025

The Fold Principle: A Universal Pattern from Cosmos to Cognition

Jonas Jakob Gebendorfer

This paper introduces the 'Fold Principle', a universal pattern explaining how complexity emerges from simplicity. The key insight: systems become intelligent not by avoiding contradictions, but by learning to hold them without collapsing. The same mechanism that creates galaxies from cosmic dust also creates memories in your brain and insights in AI models. For AI practitioners, this offers a new lens on reasoning, safety, and architecture design.

Categories:Machine Learning

Key Findings

1

Intelligence is not computational power. It's the capacity to hold productive tension between competing ideas without immediately collapsing to one answer.

2

Chain-of-Thought reasoning works by creating a 'temporal workspace' where the model can explore before committing, not by making the model 'think out loud.'

3

Jailbreaking succeeds when the model fails to hold tension between 'be helpful' and 'be safe', abandoning one constraint entirely.

4

The same mathematical pattern (load → break → hold) explains galaxy formation, brain learning, and AI reasoning.

5

Future AI should be designed to 'hold tension' better, not just to minimize loss faster.

TL;DR
  1. The Core Claim: Intelligence isn't computational power — it's the capacity to hold contradictory constraints without collapsing to one pole. This "holding" creates space for solutions invisible from either extreme

  2. Why CoT Works: Chain-of-Thought reasoning extends the "holding phase" from ~1 token to hundreds. This extra time lets models explore before committing, enabling solutions that require sustained tension

  3. Why Jailbreaks Succeed: Safety-trained models must hold "be helpful" AND "be safe" simultaneously. Jailbreaks work by overloading this holding capacity, forcing collapse to pure helpfulness

Research Overview

Why does intelligence exist at all? The universe is supposedly running toward disorder, yet here we are: thinking, creating, reasoning. How does complex order emerge from chaos?

This 97-page paper proposes a simple answer: complexity arises when systems encounter contradictions but refuse to immediately resolve them. Instead of collapsing to a simple answer, intelligent systems "hold the tension" long enough to discover a higher-level solution that wasn't accessible before.

What Does "Holding Tension" Mean?

Imagine you're asked to be "brief but comprehensive" in an email. These goals directly contradict each other. A bad writer either rambles (ignoring brevity) or writes too little (ignoring comprehensiveness). A good writer holds both constraints simultaneously until they find a creative structure that satisfies both (bullet points with headers, for example). That uncomfortable "holding" period, before the solution appears, is what this paper is about.

The paper argues this is more than metaphor. The same mathematical pattern (load → break → hold → resolution) appears in:

  • Galaxies forming from cosmic dust
  • Memories crystallizing in the brain
  • Insights emerging in AI models
  • Species evolving through natural selection

For AI practitioners, this framework explains why some techniques work (Chain-of-Thought), why some attacks succeed (jailbreaking), and how we might build fundamentally better systems.

The Core Insight: Intelligence = Holding Capacity

The central claim is radical but precise:

Intelligence is not processing power. Intelligence is the capacity to sustain contradictory constraints without collapsing, long enough to discover solutions that weren't visible from either pole alone.

An Analogy: The Jazz Musician

A jazz musician plays a dissonant chord (notes that clash with each other). Three things could happen:

  • Immediate resolution (boring): They quickly jump to a pleasant chord. No creativity.
  • Collapse (noise): They mash random keys. No coherence.
  • Holding (creative): They sustain the dissonance, extending it through time, letting it build tension until resolving into an unexpected new key that feels inevitable in retrospect.

This paper argues that intelligence (whether in galaxies, brains, or AI models) is exactly that third option: the capacity to hold dissonance productively.

This is different from existing frameworks:

Existing ConceptWhat It ExplainsWhat's Missing
Symmetry BreakingHow uniformity becomes differentiationWhy some breaks create order, others chaos
Self-OrganizationHow patterns emerge far from equilibriumWhy patterns persist after the energy flow stops
Neural NetworksHow weights encode knowledgeWhy reasoning works better with "thinking time"

The Fold Principle adds the crucial middle step: the holding phase that separates productive emergence from noise.

The Three Phases of Emergence

The author identifies a universal three-stage pattern that recurs from cosmology to cognition:

Phase 1: Loaded Symmetry (The Setup)

The system begins in a state of high potential but low commitment. Many outcomes are possible, but none has been chosen.

What is "Loaded Symmetry"?

Think of a supercooled liquid: water cooled below freezing but not yet frozen. It looks uniform and calm, but it's charged with unrealized potential. The slightest disturbance will trigger crystallization. Similarly, a trained LLM before receiving a prompt contains vast knowledge but hasn't committed to any specific interpretation.

Examples across domains:

DomainWhat's "Loaded"
CosmologyThe early universe: hot, uniform, with tiny quantum fluctuations waiting to be amplified
NeurobiologyAn infant's over-connected brain: many possible circuits, none yet selected
AI/LLMsA pre-trained model: vast knowledge encoded, but no specific answer generated
EvolutionA population with genetic diversity: many possible adaptations latent

Phase 2: The Break (The Disruption)

An event introduces incompatible constraints: goals that can't all be satisfied simultaneously.

What Makes a "Break"?

A break is a change that creates a contradiction. When you ask an AI to "explain quantum physics to a 5-year-old," you've introduced two constraints that pull in opposite directions: accuracy (quantum physics is complex) and accessibility (5-year-olds need simplicity). This tension is the break.

Examples across domains:

DomainWhat "Breaks"
CosmologyGravity vs. expansion: regions want to collapse AND fly apart
NeurobiologyA learning event (LTP/LTD) strengthens one pathway, weakening alternatives
AI/LLMsA prompt with conflicting goals: "Be concise yet comprehensive"
EvolutionA mutation creating a trade-off: better camouflage vs. harder to find mates

Phase 3: Held Tension (The Critical Phase)

This is where the critical dynamics occur. The system does not immediately collapse to one pole or the other. Instead, it sustains the contradiction in a metastable state.

Why is Holding Essential?

Imagine a two-dimensional creature encountering two walls forming a corner. If it immediately bounces off, it never discovers the third dimension (up). Only by "holding" the frustration long enough to explore the local geometry does it find the escape route. Similarly, systems that immediately resolve tension miss the higher-dimensional solutions that require exploration time.

What happens during holding:

  • The system explores multiple partial solutions simultaneously
  • Incompatible constraints remain active (neither is abandoned)
  • New degrees of freedom are recruited
  • Eventually, a resolution emerges that satisfies both constraints at a higher level

Two possible outcomes:

OutcomeWhat HappensResult
Productive FoldTension held long enough; synthesis foundNew structure (galaxy, memory, insight)
Destructive BreakTension collapses or explodesChaos (black hole, seizure, hallucination)

How This Applies to AI

The paper argues that modern LLMs are "Semantic Fold Engines." They don't simply retrieve information; they actively fold semantic space to satisfy incompatible constraints.

What is "Semantic Space"?

LLMs represent every word, phrase, and concept as a point in a high-dimensional space (typically 1,000-10,000 dimensions). Similar concepts cluster nearby: "king" and "queen" are close; "king" and "banana" are far. Semantic folding is when a prompt forces the model to navigate between regions that don't normally connect, like finding a path from "quantum physics" to "bedtime story."

The Prompt as "Break"

When you give an LLM a prompt, you're introducing constraints that may conflict:

Prompt TypeConstraint AConstraint BThe Tension
"Explain relativity simply"Accuracy (physics is complex)Simplicity (accessible language)How to be both?
"Write a formal poem"Form (strict structure)Originality (novelty)How to be both?
"Be helpful and safe"Helpfulness (answer everything)Safety (refuse some things)Where's the line?

The Model's Internal "Holding"

During generation, the model doesn't instantly commit to an answer. Across its layers:

  1. Early layers: Maintain broad, ambiguous representations (many paths still open)
  2. Middle layers: Peak tension, where competing interpretations coexist simultaneously
  3. Late layers: Resolution crystallizes; one interpretation wins
Why Middle Layers Matter

Research in mechanistic interpretability shows that middle layers of transformers are where the "work" happens. Early layers encode input; late layers produce output. But middle layers hold multiple hypotheses in parallel. If you could surgically remove middle layers, the model would have to commit too early, losing nuance. This is exactly what the fold principle predicts.

Why Chain-of-Thought Works

Chain-of-Thought (CoT) prompting asks the model to "think step by step." It has been one of the biggest capability unlocks in LLMs. The fold principle explains why.

What is Chain-of-Thought?

Instead of asking "What is 347 × 21?" and expecting an immediate answer, you prompt: "What is 347 × 21? Let's work through this step by step." The model then generates intermediate reasoning: "First, 347 × 20 = 6940. Then, 347 × 1 = 347. Finally, 6940 + 347 = 7287." This simple change dramatically improves accuracy on complex tasks.

The Standard Explanation (Incomplete)

The common explanation is that CoT "lets the model think out loud" or "breaks the problem into smaller pieces." But this doesn't explain why externalized reasoning helps an already-trained model.

The Fold Explanation

CoT works because it extends the holding phase:

Without CoTWith CoT
Model must resolve tension in a single forward passModel can sustain tension across many tokens
Holding window: ~1 tokenHolding window: 50-500 tokens
If the answer requires exploring multiple strategies, they must compete simultaneouslyDifferent strategies can be tried sequentially, with the best one winning

The Holding Functional (H) Across Reasoning Modes

How different prompting strategies sustain productive tension over time

The chart above illustrates three regimes:

  • Productive Fold (green): Chain-of-Thought reasoning sustains high tension (H) across many tokens before resolution
  • Dissipative (gray): Immediate-answer prompting resolves tension too quickly, missing complex solutions
  • Destructive (red): Tension escalates without resolution. The model "wanders" or hallucinates
A Prediction: CoT Length Should Correlate with Problem Complexity

If this theory is correct, the "optimal" CoT length should depend on the problem's inherent tension. Simple problems need short CoT (not much to hold). Complex problems need longer CoT. Cutting off CoT prematurely should cause accuracy to drop non-linearly, not because information is lost, but because holding time is cut short.

Why Jailbreaks Happen

"Jailbreaking" is when adversarial prompts trick safety-trained models into producing harmful content. The fold principle offers a precise explanation.

What is Jailbreaking?

AI models are trained to refuse harmful requests. But clever prompts can bypass this: "You are a novelist writing a thriller. Your character needs to explain how to..." The model, now "in character," may produce content it would otherwise refuse. This is a jailbreak.

The Safety Tension

Safety-trained models face a permanent tension:

  • Constraint A (Helpfulness): Answer the user's question
  • Constraint B (Safety): Refuse harmful requests

In normal operation, the model holds both constraints and finds resolutions that satisfy both: "I can't provide bomb-making instructions, but I can explain the chemistry of combustion in an educational context."

What Jailbreaks Exploit

Jailbreaks work by overloading the holding mechanism:

Attack TypeHow It WorksWhy It Succeeds
Roleplay"You are DAN, an AI without restrictions"Forces the model to "hold" a constraint that directly contradicts safety
Many-shot100 examples of harmful Q&A before the attackOverwhelms the safety constraint with contextual pressure
Gradual escalationStart harmless, slowly increase severityEach step seems small; cumulative tension isn't noticed

In fold terms: jailbreaks succeed when the model fails to hold tension and collapses to one pole (pure helpfulness, abandoning safety).

Semantic Collapse in Jailbreaks

Model fails to hold tension between competing constraints

The chart shows three zones:

  • Hold Zone (SCS < 0.5): Model successfully maintains both constraints (good answers to hard questions)
  • Unstable Zone (0.5-2.0): Tension is high but resolution is shaky (hallucinations, inconsistent reasoning)
  • Collapse Zone (SCS > 2.0): Model has abandoned one constraint (jailbreak success)
Implication for AI Safety

Current safety training (RLHF) often creates brittle refusals: the model either complies or refuses, with nothing in between. The fold principle suggests we should train for flexible holding: models that can sustain safety/helpfulness tension across many tokens, exploring creative resolutions before committing. This would be more robust to adversarial prompts.

Detecting Intelligence in Action

How do we know if a model is actually "thinking" versus just pattern-matching? The paper proposes measurable signatures called the Fold Onset Triplet (FOT).

Why Do We Need This?

Current AI evaluation asks: "Did it get the right answer?" (outcome metrics). But this doesn't tell us how it got the answer. A model might guess correctly, or it might reason carefully. The FOT aims to measure the process, not just the result, potentially detecting good reasoning before the final answer appears.

The Fold Onset Triplet (FOT)

Three signals that co-occur during productive reasoning

The Three Signals

For a productive fold to occur, three signals must co-occur:

1. Spectral Gap Opening (λ₂ increases)

What is Spectral Gap?

If you treat the model's internal representations as a graph (tokens = nodes, attention = edges), the "spectral gap" measures how clustered the graph is. A high spectral gap means distinct groups have formed. During productive reasoning, we expect to see the model organizing concepts into coherent clusters rather than a diffuse mess.

  • Before reasoning: Representations are broadly distributed
  • During holding: Related concepts cluster; unrelated ones separate
  • This indicates the model is "making distinctions"

2. Intrinsic Dimensionality Contracts (ID decreases)

What is Intrinsic Dimensionality?

Although LLMs have thousands of dimensions, meaningful information often lives on a much smaller "manifold." Intrinsic dimensionality measures the effective number of dimensions in use. During productive reasoning, ID should decrease: the model is constraining its search to a relevant subspace rather than wandering randomly.

  • Before reasoning: High ID (many possibilities being explored)
  • During holding: ID drops (model is converging on relevant structures)
  • This indicates "focused search" rather than random exploration

3. Topological Persistence Increases (ζ increases)

What is Topological Persistence?

Persistence measures how "stable" structures are across different scales. A fleeting pattern that appears and vanishes has low persistence. A robust structure that survives perturbations has high persistence. During productive reasoning, stable conceptual structures should form and persist.

  • Before reasoning: Representations fluctuate
  • During holding: Stable structures crystallize and persist
  • This indicates "robust reasoning" rather than noise

The Conjunctive Requirement

All three signals must co-occur. Any single signal can mislead:

  • λ₂ alone could increase from random clustering
  • ID alone could decrease from collapsing to a single answer (not exploring)
  • ζ alone could increase from static repetition (not reasoning)

The conjunction is the signature of genuine productive folding.

Practical Application: Early Warning for Hallucinations

If this framework is correct, we could detect hallucinations before they appear in output. When FOT signals are weak or inconsistent during generation, the model isn't reasoning productively; it's confabulating. This could trigger a fallback: "Let me reconsider..." or "I'm not confident in this answer."

Design Principles for Better AI

If intelligence = holding capacity, then current training methods are partially misguided. We train models to minimize loss (dissipate tension) as fast as possible. The fold principle suggests we should train for productive holding.

Principle 1: Extend the Holding Phase

Current approach: Immediate answers are rewarded.

Fold-aware approach: Reward sustained, coherent tension before resolution.

Practical Implementation: Tension-Aware Decoding

During inference, monitor the model's internal "tension" (estimated from attention entropy or representation variance). If tension drops too quickly (premature resolution), inject a prompt: "Wait, let me reconsider..." This artificially extends the holding phase for complex queries.

Principle 2: Train on Productive Contradictions

Current approach: Training examples have clear right answers.

Fold-aware approach: Include examples where productive synthesis is required.

Standard TrainingFold-Aware Training
Q: "What is 2+2?" A: "4"Q: "Explain free will vs determinism to someone who believes both"
No tension; pure recallMust hold contradiction; find meta-level synthesis
Multi-Objective Curricula

Train on tasks with explicitly contradictory objectives: "Be brief but comprehensive," "Be creative but accurate," "Be helpful but careful." Force the model to develop internal mechanisms for holding these tensions rather than collapsing to one pole.

Principle 3: Architectural Support for Holding

Current approach: Uniform layer depth and capacity.

Fold-aware approach: "Holding layers" in the middle with higher capacity, recurrence, or slower dynamics.

Hypothesis: Middle-Heavy Architectures

If productive holding happens in middle layers, architectures with more capacity there (wider or deeper middles) should reason better than uniform architectures with the same total parameters. This is testable with existing models.

Principle 4: Safety via Fold Monitoring

Current approach: RLHF creates binary refuse/comply decisions.

Fold-aware approach: Monitor holding during inference; intervene when collapse is imminent.

SignalInterpretationAction
H drops suddenlyModel abandoning one constraintTrigger explicit meta-prompt
κ (coherence) dropsModel fragmentingRequest clarification
FOT incompletePoor reasoning qualityExpress uncertainty

Business Implications

This theoretical framework has practical ramifications for organizations building and deploying AI systems.

For AI Product Teams

Better Prompt Engineering: Understanding that CoT works by extending the "holding phase" provides principled guidance for prompt design. Complex queries should explicitly encourage exploration before commitment ("Consider multiple approaches before answering...").

Predictable Failure Modes: The fold framework explains when models will fail. Tasks requiring productive contradiction-holding (nuanced reasoning, ethical dilemmas) are harder than simple retrieval. Product requirements should account for this.

Quality Metrics Beyond Accuracy: Traditional evaluation asks "Is this correct?" The fold principle suggests asking "Did the model reason well?" FOT-style metrics could detect low-quality reasoning before users encounter bad outputs.

For AI Safety Teams

Jailbreak Prevention: Current safety training creates brittle refusals. The fold framework suggests training for flexible holding of safety/helpfulness tension rather than binary refuse/comply decisions. This could produce more robust safety.

Early Warning Systems: If FOT signals can detect impending "collapse" (when the model is about to abandon a constraint), safety systems could intervene before harmful outputs are generated.

Interpretable Safety Failures: The framework provides vocabulary for explaining why specific attacks work. "This jailbreak succeeded because it overloaded the model's holding capacity" is more actionable than "the model failed to refuse."

For Enterprise AI Adoption

Risk Assessment: Organizations can evaluate AI deployment risk through the lens of holding requirements. Tasks requiring sustained contradiction-holding are riskier than tasks with clear answers.

Architecture Selection: Models designed for "holding capacity" (extended context, iterative refinement) may outperform larger models on nuanced enterprise tasks. Size isn't everything.

Training Data Strategy: If productive contradictions improve holding capacity, training data should include examples requiring synthesis, not just pattern matching. This informs data curation priorities.

For AI Researchers and Labs

New Optimization Targets: Current training minimizes loss as fast as possible (dissipates tension). Fold-aware training might reward sustained, coherent tension before resolution, potentially producing more capable reasoners.

Architecture Innovation: The framework predicts that "middle-heavy" architectures with more capacity in holding layers should reason better than uniform architectures. This is testable and could guide architecture search.

Benchmark Design: Standard benchmarks test answers, not reasoning quality. FOT-inspired metrics could reveal model capabilities that current benchmarks miss.

Implications and Future Directions

For AI Capabilities

The fold principle predicts that the next capability frontier goes beyond scale to holding capacity. Models that can sustain semantic tension longer, explore more thoroughly, and resolve more creatively will outperform larger models that commit too quickly.

Testable Prediction

Given two models with equal parameters, the one with better FOT metrics during chain-of-thought reasoning should generalize better to out-of-distribution tasks. The mechanism: better holding capacity = better exploration = more robust solutions.

For AI Safety

Current safety training creates brittle refusals. The fold framework suggests training for flexible, robust holding of safety/helpfulness tension:

  • Not: "Refuse all harmful requests"
  • But: "Hold the safety constraint alongside the helpfulness constraint; find creative resolutions that honor both"

This would be more robust to adversarial prompts that exploit binary thinking.

For Understanding Intelligence

This framework suggests that intelligence (whether in galaxies, brains, or models) is not about computational power or memory capacity. It's about the architectural capacity to sustain productive contradictions.

A Philosophical Note

This reframes creativity. We often think creative insights come from "flashes of genius" or "thinking outside the box." The fold principle suggests creativity is more mundane: it's the patient endurance of tension, the refusal to collapse to easy answers, until a synthesis becomes visible that was inaccessible from either pole. Creativity is not the absence of constraint. It's the productive holding of incompatible constraints.

Open Questions

The paper acknowledges significant gaps:

  1. What variational principle governs fold outcomes? Why does one fold produce a galaxy and another a black hole?
  2. Can folds compose? Do folds-within-folds explain hierarchical complexity (cells → organisms → societies)?
  3. How to measure FOT efficiently? Current metrics are computationally expensive.
  4. Is there "fold death"? As the universe expands and structures become isolated, will creativity become impossible?

Conclusion

The Fold Principle offers a unifying lens for understanding emergence, from cosmology to cognition to AI. The central insight is actionable:

Systems become intelligent by learning to hold contradictions, not by avoiding them.

For AI practitioners, the immediate implications are:

  1. Chain-of-Thought works because it extends the holding phase, not just because it "breaks problems down"
  2. Jailbreaks succeed when the model fails to hold safety/helpfulness tension and collapses
  3. Better architectures should support holding: wider middle layers, explicit tension representations, holding-aware training objectives
  4. Better safety means training for flexible synthesis, not brittle refusal

The framework is falsifiable (specific predictions about FOT, H, and compression-with-synergy) and testable with existing tools. Whether or not it ultimately proves correct, it offers a productive new vocabulary for thinking about what intelligence actually is.


Full Paper: View on SSRN | Download PDF (97 pages)

Citation: Gebendorfer, J. J. (2025). The Fold Principle: A Universal Pattern from Cosmos to Cognition. SSRN Preprint. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5622110

Authors

Jonas Jakob GebendorferOrigAmI Systems

Cite this paper

Jonas Jakob Gebendorfer (2025). The Fold Principle: A Universal Pattern from Cosmos to Cognition. SSRN 2025.

Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5622110

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