Scaling Latent Reasoning via Looped Language Models

Looped computation shows promise in improving the reasoning-oriented performance of LLMs by scaling test-time compute. However, existing approaches typically require either training recurrent models from scratch or applying disruptive retrofits, which involve substantial computational costs and may compromise pretrained capabilities. To address these limitations, we introduce \textbf{Looped Depth Up-Scaling} (LoopUS), a post-training framework that converts a standard pretrained LLM into a looped architecture. As a key technical contribution, LoopUS recasts the pretrained LLM into an encoder, a looped reasoning block, and a decoder. It operationalizes this latent-refinement architecture through four core components: (1) block decomposition, guided by staged representation dynamics; (2) an input-dependent selective gate to mitigate hidden-state drift; (3) random deep supervision for memory-efficient learning over long recursive horizons; and (4) a confidence head for adaptive early exiting. Collectively, these mechanisms transform a standard non-looped model into a looped form while stabilizing it against both computational bottlenecks and representation collapse. Through stable latent looping, LoopUS improves reasoning-oriented performance without extending the generated traces or requiring recurrent training from scratch. For more details, see https://thrillcrazyer.github.io/LoopUS

Language models typically reason via explicit chain-of-thought (CoT), generating intermediate steps token-by-token. Latent CoT offers an alternative: it performs multi-step reasoning in the model's hidden states, replacing decoded tokens with continuous representations for greater efficiency. However, existing latent CoT methods underperform explicit CoT beyond 1B parameters, and the gap widens with scale. Looped, or recurrent-depth, Transformers, which reuse their weights to increase computation depth without adding parameters, are a natural fit for latent reasoning. We therefore ask whether looped Transformers can bridge this gap. We answer affirmatively with a simple recipe: a looped padded Transformer that processes K latent blocks in parallel for R iterations, with a cross-entropy loss on each latent position's gold CoT-step token, similar to explicit CoT supervision. We instantiate it as LOTUS (Looped Transformers with parallel supervision on latents). LOTUS is, to our knowledge, the first latent-CoT method to bridge the gap to explicit CoT at the 3B scale, while cutting thought-phase latency by 2.5x-6.9x from compact math expressions to natural language. Projecting LOTUS's post-loop latents through the base LM head recovers the gold reasoning steps and even surfaces alternative valid intermediate steps, evidence that its latent space is interpretable and CoT-aligned. Ablations confirm that both the looped backbone and the parallel supervision on gold CoT tokens are essential. Code is available at https://github.com/yingfan-bot/lotus.

Large Language Models (LLMs) have achieved remarkable success in complex reasoning tasks through Chain-of-Thought (CoT) prompting. However, these models often exhibit "computational overthinking," generating redundant reasoning steps that increase latency and cost without improving accuracy. Recent studies suggest that CoT trajectories can be significantly pruned, yet existing methods often rely on forcing a static thinking budget, heuristic filtering, sub-optimal early exit via classification, or expensive re-training. In this paper, we introduce OS-Pruner, a lightweight plug-in framework that formulates chain-of-thought pruning as an optimal stopping problem. Given a reasoning prefix, OS-Pruner learns whether further reasoning is worth its token cost by optimizing an explicit utility that trades off final-answer accuracy against generated length. Our novel formulation enables the model to dynamically assess the sufficient point of termination for a reasoning chain. OS-Pruner is designed to be lightweight during both training and inference, and to provide users with fine-grained control over the reasoning-effort vs. accuracy trade-off. On diverse reasoning benchmarks and base models, OS-Pruner achieves 20-60% reduction in generation length with minimal accuracy sacrifice.