Tokenization is an essential text preprocessing step in almost all large language models (LLMs), and byte-pair encoding (BPE) is a popular tokenization method used by models such as GPT, GPT-2, and RoBERTa. Since LLMs have many applications that require the fast processing of large amounts of data (e.g., real-time document summarization and analysis), offline tokenization algorithms may have high latency or prohibitive memory requirements. In this paper, we study BPE tokenization with a focus on providing a streaming implementation. A BPE tokenizer is specified with an ordered list of token merge rules, where each rule describes the merging of two adjacent tokens. We introduce the concept of delay for a list of BPE merge rules, which corresponds to the amount of lookahead needed before tokens can be finalized. We view BPE tokenization as a sequence-to-sequence transduction and show how to obtain a bound on delay. This bound enables streaming tokenization with a low memory footprint. We propose a novel streaming algorithm that uses a small amount of memory (independent of the input text) and has linear time complexity in the length of the input text. Our experimental evaluation shows that our algorithm performs well in comparison to existing BPE tokenizers.

@article{paperbot3671,
  title = {An Efficient Algorithm for Streaming BPE Tokenization},
  author = {Konstantinos Mamouras and Angela W. Li and Yudi Yang},
  journal = {Proceedings of the ACM on Programming Languages},
  volume = {10},
  number = {PLDI},
  year = {2026},
  doi = {10.1145/3808330}
}