Current language models use subword-based tokenization algorithms like Byte Pair Encoding, which put their validity as models of linguistic representations into question. In this paper, we explore the potential of tokenization-free, phoneme- and grapheme-based language models. We demonstrate that small models based on the Llama architecture can achieve strong linguistic performance on standard syntactic and novel lexical/phonetic benchmarks when trained with character-level vocabularies. We further show that phoneme-based models without any graphemic biases almost match grapheme-based models in standard tasks and novel evaluations. Our findings suggest a promising direction for creating more linguistically plausible language models that are better suited for computational studies of language acquisition and processing.
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