Penelope is introduced, an efficient latent-reasoning framework for pretrained decoder-only Transformers that localizes recurrent computation to a selected decoder interval and attains competitive accuracy relative to established latent-reasoning models while reducing measured inference latency.
Abstract
Complex structured reasoning tasks often require additional computation, yet current language models obtain it mainly by increasing parameter scale or by serializing intermediate steps as chain-of-thought (CoT) tokens. The former raises training and deployment costs, while the latter ties reasoning computation to autoregressive output length. We introduce Penelope, an efficient latent-reasoning framework for pretrained decoder-only Transformers that localizes recurrent computation to a selected decoder interval. The lower decoder prefix is evaluated once to construct a problem-conditioned boundary memory, which is then iteratively refined through time-modulated GRU dynamics and recurrent readout states before answer generation. A progressive CoT-to-latent curriculum transfers visible reasoning into this internal recurrent path, allowing additional computation to be allocated in latent space without repeatedly executing the complete decoder or generating a long intermediate trace. Experiments on open-source structured-reasoning benchmarks show that, at validation-selected latent budgets, Penelope attains competitive accuracy relative to established latent-reasoning models while reducing measured inference latency. These results show that latent refinement can be localized to a narrow decoder interval, reducing repeated full-decoder execution without generating a long visible reasoning trace and providing a practical accuracy-efficiency tradeoff for decoder-only Transformer models.
Optimization-based latent reasoning improves large language model outputs by optimizing instance-specific continuous states at test time while keeping model parameters frozen. Existing methods, however, typically connect these states to the reasoning trajectory through decoded tokens, making sequence-level credit assignment indirect and obscuring how latent updates shape subsequent reasoning. We introduce GradCuit (gradient through circuit), which inserts optimizable latent states at a selected Transformer layer between the hidden representations of the prompt and the generated continuation. Causal self-attention provides every continuation-token log-probability with a differentiable path to every preceding latent state through the remaining Transformer blocks, enabling reward-weighted gradients from the entire continuation to be assigned directly to the latents. Across five instruction-tuned backbones, three reasoning benchmarks, and two answer formats, GradCuit achieves an average accuracy of 64.5%, outperforming chain-of-thought prompting by 6.6 percentage points and the strongest competing method by 2.4 points. GradCuit also demonstrates greater robustness: across seven learning-rate settings, it consistently outperforms LatentSeek while reducing the standard deviation of accuracy from 1.53 to 0.82, and even its random-walk variant remains competitive with LatentSeek. For interpretability, token-level gradient attribution reveals that latent influence concentrates on reasoning-connector tokens, while layer analysis identifies early-to-middle Transformer layers as the most effective optimization space. By directly optimizing internal reasoning from outcome feedback, GradCuit opens a new axis of robust and interpretable test-time scaling, where LLMs adapt how they reason rather than merely regenerate, sample, or rerank outputs.
Zhaoxin Yu, Qianli Shen, Hengli Li et al.· 0 citations
LatentMT is introduced, the first systematic study of latent-reasoning LoopLMs for machine translation that adapts a small 2.6B-parameter backbone model with lightweight training and shows that hidden-representation differences shrink along the recurrent reasoning-step axis, supporting the observed saturation in performance.
Wei-Rui Chen, Samar M. Magdy, Chiyu Zhang et al.· 0 citations
Language models solve complex problems by articulating intermediate reasoning steps in natural language. While effective, this process is computationally bottlenecked: each reasoning step conveys only a single subword, and many are spent expressing a thought instead of carrying out computation. We propose MUX, a simple method for high-bandwidth and compact reasoning based on distillation of discrete reasoning into continuous multiplexed tokens in a latent space. Here, each latent token is trained to represent a weighted linear superposition (multiplexing) of a span of discrete reasoning subwords, where this superposition is lossless by construction and the span can be fully recovered (demultiplexing). We prove that simple position-dependent weightings, such as suitable geometric decay, support lossless multiplexing, which in turn prevents shortcut behaviors caused by latent collapse. We further show that multiplexed reasoning can perform parallel exploration in problems that require search. Across 32 evaluation settings spanning four language models, MUX outperforms strong latent reasoning baselines. Ablation and probing analyses further show that the learned latent tokens encode faithful and interpretable reasoning. Our results suggest that lossless superposition as local learning targets constitutes a sufficient condition for achieving strong and efficient latent continuous reasoning.
Ayhan Suleymanzade, Halil Alperen Gozeten, Michael M. Bronstein et al.· 1 citation
Large language model (LLM) agents increasingly operate over long interaction histories, where effective reasoning requires identifying and exploiting task-relevant evidence distributed across past observations and actions. However, useful information encoded in previously computed representations is often underutilized during subsequent generation. We propose \textbf{TransMem}, a lightweight inference-time parametric memory module that transforms sparse historical hidden states from a frozen LLM backbone into reusable memory representations. TransMem uses a lightweight gating network to dynamically apply the latent intervention to the current hidden states, without repeatedly encoding the preceding context. To learn transferable memory utilization rather than task-specific knowledge, we introduce evidence-conditioned self-distillation. A memory-augmented student processes the full context and matches the predictive distribution of an evidence-only teacher that shares the same frozen backbone. Experiments on LoCoMo, HotpotQA, and MemoryAgentBench demonstrate consistent improvements across different model architectures and scales. TransMem yields gains of 11.58--29.25 $F_1$ on LoCoMo and 10.20--13.03 $F_1$ on HotpotQA, while improving the average MemoryAgentBench accuracy from 29.54\% to 40.00\%. These results establish sparse historical hidden states as an effective and efficient memory substrate for long-context LLM agents. Our code is available at https://github.com/Haodong-Lei-Ray/TransMem.
Haodong Lei, Junming Liu, Yirong Chen et al.· 0 citations
Chain-of-Thought (CoT) reasoning has significantly enhanced the multi-step problem-solving capabilities of large language models (LLMs) by introducing explicit intermediate reasoning. However, advanced Large Reasoning Models (LRMs) often exhibit overthinking behaviors, including excessively long reasoning steps, redundant steps, and high computational overhead. Existing token-length reward strategies aim to promote concise outputs, but often result in pseudo-conciseness, where token count is reduced, yet redundant reasoning persists, leading to longer and less structurally efficient chains. To address these limitations, we propose ChainPrune, a novel reasoning path semantic structural optimization method to efficiently and controllably synthesize self-generated high-quality training data. We initially consolidate self-generated reasoning paths into a tree-based structure, followed by a multi-criteria dominant path selection process for preference data construction that formulates shallow reasoning trajectories while preserving essential reasoning steps. To further enhance the quality of reasoning, we incorporate a DPO-based preference learning method combined with supervised loss, effectively mitigating false reward suppression. This innovative integration significantly enhances both the efficiency and effectiveness of our reasoning framework. Comprehensive experimental results demonstrate significant reductions in step length and computational overhead, while maintaining or even enhancing accuracy.
Weihang Pan, Zhengxu Yu, Yuxiang Zhang et al.· 1 citation
Does RL post-training merely amplify primitive skills already latent in a base model, or can it compose primitive skills into new higher-level strategies? We study this question in a fully observable rewrite-grammar environment where the pretraining distribution is known and every generated rewrite can be audited. A Transformer is pretrained on primitive symbol-rewrite chains and post-trained on a Trace-based reasoning task with only a binary final-answer reward. RL solves held-out problems that remain rarely solved by the pretrained model even under much larger sampling budgets, while rejection fine-tuning improves early but plateaus. Trace analysis shows that RL reorganizes primitive competence through a phased compositional mechanism: it first strengthens primitive reductions, then discovers valid composed procedures. These include sequential compositions, which collapse ordered chains of primitive contractions, and parallel compositions, which combine independent primitive contractions in a single step. The composed procedures are not isolated samples; they are reused and consolidated into a stable repertoire. Comparing RL with rejection fine-tuning shows that the key difference is not exploration volume but selectivity: RFT produces many shortcut-like rewrites, much of them invalid, whereas RL concentrates exploration into valid reusable structure. Pretraining ablations show that the emergence of compositional strategies is gated not by primitive exposure alone, but by whether pretraining organizes primitive competence into reduction procedures that RL can later compress. The base model provides weak procedural ingredients; RL builds them into reliable higher-level strategies.
Azwar Abdulsalam, Nishil Patel, Andrew M. Saxe· 0 citations