Self-Attention as a Covariance Readout: A Unified View of In-Context Learning and Repetition

Large language models (LLMs) exhibit two striking and ostensibly unrelated behaviours: in-context learning (ICL) and repetitive generation. In both, the model behaves as though it had summarised the context into a population-level statistic and discarded token-level detail. We ask whether this ``summarisation and forgetting'' can be derived from the attention mechanism itself, and answer in the affirmative. Under stationary, ergodic and elliptical inputs, the softmax attention output converges almost surely to ThetaVSigmaThetaKtopThetaQ xt, where Sigma is the input covariance; the long-context limit is therefore a linear readout of the input's second-order statistics. Two consequences follow. (i) For in-context linear regression, a single softmax head can implement one step of population gradient descent. Stacking such heads with residual connections iterates this update and implements multiple gradient descent steps. (ii) Propagated across an L-layer transformer, this readout drives the terminal hidden state at the parametric 1/t rate to a deterministic function of the current token alone, so that autoregressive generation collapses asymptotically to a first-order Markov chain whose attracting orbits furnish a structural account of repetition and mode collapse. The two phenomena thus emerge as facets of a single covariance-readout principle.