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In this paper, we introduce DiscoGP, a novel framework for extracting self-contained modular units, or sheaves, within LMs. These sheaves correspond to the models' impressive zero-shot performance across a variety of tasks. Our DiscoGP framework extends the concept of functional circuits, widely explored in interpretability research, by introducing sheaves --- subsets of connection edges and weight parameters in an LM's computation graph --- as interpretation units. Our framework identifies these sheaves through a differentiable pruning algorithm that operates on both the computation graph's edge connections and the model's weight parameters. This process reduces the LM to a sparse skeleton while preserving its core capabilities. Experimental results demonstrate that across a range of linguistic and reasoning tasks, DiscoGP extracts sheaves that preserve 93-100% of the model's task performance while comprising only 1-7% of the original weights and connections. Furthermore, our analysis reveals that, compared to previously identified LM circuits, the sheaves discovered by DiscoGP exhibit superior modularity and functional fidelity. Extending our method to the neuron level also unveiled novel insights into the inner workings of LLMs.