Finding the Minimal Parameter Budget for Implicit Reasoning: A Data Complexity Driven Scaling Law for Language Models

Reasoning is a core capability of language models (LMs), yet it remains unclear how much model capacity is necessary to support reasoning during pretraining. In this work, we study the minimal parameter budget required for implicit reasoning, defined as the ability to infer new facts from learned knowledge without explicit chain-of-thought supervision. To isolate this phenomenon, we pretrain LMs from scratch in a controlled synthetic environment that mimics the structure and distribution of real-world knowledge graphs, and evaluate their ability to complete missing edges via multi-hop inference. From both a theoretical and an empirical perspective, we identify a scaling law linking this optimal parameter budget to a graph search entropy measure. Across a wide range of model sizes, training steps, and graph complexities, we show that an optimally sized language model can reliably reason over approximately 0.008 bits of information per parameter at most. Our results characterize the minimal sufficient capacity for implicit reasoning during pretraining. Our findings provide principled guidance for matching model size to data complexity and offer new insights into the scaling behavior of reasoning in large language models.