GPT `thinks` using words/letters/tokens, as humans do we also think with words, or are we capable of thinking without any words at all. If we are, then whatever GPT will be at, it still will be only mimicking consciousness, until it can reason without using words.
It depends on what you mean by "reason" exactly. The "thinking" parts of the model work with embeddings internally, not tokens. Or at least that's what they get as input; who knows what it becomes inside eventually.
OTOH, the not-really-internal monologue when you tell it to "think it out" loud, which also drastically improves quality of the final answer, is tokens since it has to be marshalled through the context window for the next inferred token.