Quantum computing offers theoretical advantages over classical computing for specific tasks, yet the boundary of practical quantum advantage remains an open question. To investigate this boundary, it is crucial to understand whether, and how, classical machines can learn and simulate quantum algorithms. Recent progress in large language models (LLMs) has demonstrated strong reasoning abilities, prompting exploration into their potential for this challenge. In this work, we introduce GroverGPT-2, an LLM-based method for simulating Grover's algorithm using Chain-of-Thought (CoT) reasoning and quantum-native tokenization. Building on its predecessor, GroverGPT-2 performs simulation directly from quantum circuit representations while producing logically structured and interpretable outputs. Our results show that GroverGPT-2 can learn and internalize quantum circuit logic through efficient processing of quantum-native tokens, providing direct evidence that classical models like LLMs can capture the structure of quantum algorithms. Furthermore, GroverGPT-2 outputs interleave circuit data with natural language, embedding explicit reasoning into the simulation. This dual capability positions GroverGPT-2 as a prototype for advancing machine understanding of quantum algorithms and modeling quantum circuit logic. We also identify an empirical scaling law for GroverGPT-2 with increasing qubit numbers, suggesting a path toward scalable classical simulation. These findings open new directions for exploring the limits of classical simulatability, enhancing quantum education and research, and laying groundwork for future foundation models in quantum computing.