A Closer Look at TabPFN v2: Strength, Limitation, and Extension

Tabular datasets are inherently heterogeneous, posing significant challenges for developing pre-trained foundation models. The recently introduced transformer-based Tabular Prior-data Fitted Network v2 (TabPFN v2) achieves unprecedented in-context learning accuracy across multiple tabular datasets, marking a pivotal advancement in tabular foundation models. In this paper, we comprehensively evaluate TabPFN v2 on over 300 datasets, confirming its exceptional generalization capabilities on small- to medium-scale tasks. Our analysis identifies randomized feature tokens as a key factor behind TabPFN v2's success, as they unify heterogeneous datasets into a fixed-dimensional representation, enabling more effective training and inference. To further understand TabPFN v2's predictions, we propose a leave-one-fold-out approach, transforming TabPFN v2 into a feature extractor and revealing its capability to simplify data distributions and boost accuracy. Lastly, to address TabPFN v2's limitations in high-dimensional, large-scale, and many-category tasks, we introduce a divide-and-conquer mechanism inspired by Chain-of-Thought prompting, enabling scalable inference. By uncovering the mechanisms behind TabPFN v2's success and introducing strategies to expand its applicability, this study provides key insights into the future of tabular foundation models.