Adaptive Loops and Memory in Transformers: Think Harder or Know More?

Looped Transformers apply the same layers several times per token, adding compute to improve quality without more parameters. Each recursion, however, writes its own key-value cache, so memory still grows with compute. Inference-time techniques can shrink this cache at a cost in quality. We pretrain looped language models to share memory: only the first recursion writes a cache, and later recursions read it while keeping a short window of their own. Surprisingly, we find that sharing memory does not cost quality and instead improves it. At 150M-1B parameters, our Looped Prediction Transformer (LPT) and its hybrid variant set a new quality-memory frontier for looped models: with five recursions, the hybrid lowers validation perplexity on FineWeb-Edu by 1.12-1.82 relative to a same-size standard Transformer while using 76-79% less context memory. Through an extensive analysis, we investigate why memory sharing helps. Shared and local memory develop different representations, and later recursions attend mostly to the shared memory, which also acts as a gradient highway to the first recursion.

Chain-of-thought prompting and looped Transformers both give a fixed model more test-time computation, but they differ in what they remember. Chain-of-thought stores intermediate state in generated tokens that remain in the context, whereas a looped Transformer carries state through recurrent hidden activations. We argue that this persistent mutable memory is a central resource for test-time reasoning. We compare three memory regimes, the compressed latent loop, the full sequence-state loop, and the chain-of-thought scratchpad. Our main result shows that a compressed loop is limited by the size of its recurrent state. Running the loop longer adds computation but does not by itself create a growing scratchpad, so a loop with a small recurrent state remains a small-space reasoner even when run for many steps. Under a standard complexity assumption, such loops cannot decide problems that are P-complete under logspace reductions, whereas polynomial-length chain-of-thought can. The separation is specific to compressed loops, as full sequence-state loops carry state at every input position and live in a memory-rich regime closer to explicit scratchpads. Controlled pointer-chasing and associative-recall sweeps illustrate this memory-budget view, with performance sensitive to whether the persistent-state budget matches the task's working-memory demand.

We present the Loopie series, consisting of two Mixture-of-Experts (MoE) models: a 20B-parameter model with 2B active parameters and a 6B-parameter model with 0.6B active parameters. Looped Transformers have long faced a challenge: given an N times increase in pre-training compute, increasing the parameter count by a factor of N usually outperforms looping a model N times. Loopie addresses this challenge. Extensive ablation studies, including comparisons with a vanilla 30B-A3B model, show that Loopie substantially outperforms vanilla Transformer baselines trained with the same compute budget. With a novel post-training method, Loopie develops strong reasoning abilities and achieves frontier-level reasoning performance.