They could be operating in latent space entirely maybe? It seems plausible to me that you can just operate on the embedding of the conversation and treat it as an optimization / compression problem.
Yes, Codex compaction is in the latent space (as confirmed in the article):
> the Responses API has evolved to support a special /responses/compact endpoint [...] it returns an opaque encrypted_content item that preserves the model’s latent understanding of the original conversation
Is this what they mean by "encryption" - as in "no human-readable text"? Or are they actually encrypting the compaction outputs before sending them back to the client? If so, why?
"encrypted_content" is just a poorly worded variable name that indicates the content of that "item" should be treated as an opaque foreign key. No actual encryption (in the cryptographic sense) is involved.
This is not correct, encrypted content is in fact encrypted content. For openai to be able to support ZDR there needs to be a way for you to store reasoning content client side without being able to see the actual tokens. The tokens need to stay secret because it often contains reasoning related to safety and instruction following. So openai gives it to you encrypted and keeps the keys for decrypting on their side so it can be re-rendered into tokens when given to the model.
There is also another reason, to prevent some attacks related to injecting things in reasoning blocks. Anthropic has published some studies on this. By using encrypted content, openai and rely on it not being modified. Openai and anthropic have started to validate that you're not removing these messages between requests in certain modes like extended thinking for safety and performance reasons
Hmmm, no, I don't know this for sure. In my testing, the /compact endpoint seems to work almost too well for large/complex conversations, and it feels like it cannot contain the entire latent space, so I assumed it keeps pointers inside it (ala previous_response_id). On the other hand, OpenAI says it's stateless and compatible with Zero Data Retention, so maybe it can contain everything.
