Ouroboros: Dynamic Weight Generation for Recursive Transformers via Input-Conditioned LoRA Modulation

Scaling transformer language models creates an inherent tension between expressivity and memory efficiency. While unique weights across layers preserve functional specialization---from input-grounding to abstract refinement---they incur a substantial memory footprint. Conversely, standard depth-sharing enforces uniform transformations that collapse representational diversity and degrade modeling quality. We introduce Gated Recurrent Transformer, a recurrent depth transformer where fixed-depth prelude and coda blocks bracket a single shared core iterated R times. Inspired by gated recurrent neural networks, we employ a lightweight projection and an elementwise update gate---conditioned on the hidden state, the fixed prelude output, and noise resampled at every step---to modulate the recurrent update. This allows the model to specialize the input to the same few layers across recurrences, rather than requiring many unique layers to achieve functional diversity. Under an isoFLOPS constraint, a 3-layer Gated Recurrent Transformer matches the accuracy of a 12-layer GPT-2 Small baseline with similar training and inference FLOPs, and leads MoR and heavy-tail depth sampling in all nine scale-by-budget cells; at medium and large scale it approaches dense quality at the standard token budget and overtakes it at medium scale once that budget is doubled. Under an isoPARAMS constraint, deeper recurrence achieves a 2.76 validation loss versus 2.84 for a non-recurrent counterpart at matched parameter and data budget. Our results demonstrate that adaptive depth reuse is a principled strategy for trading parameters for quality: at large scale, 63% fewer parameters and 59% less peak decoding memory for a 10% increase in compiled generation latency.

We measure how much one recurrence is worth to a looped (depth-recurrent) transformer, in equivalent unique parameters. From an iso-depth pretraining sweep across recurrence counts $r \in \{1, 2, 4, 8\}$ spanning ${\sim}50\times$ in training compute, we fit a joint scaling law $L = E + A\,(N_\text{once} + r^{\varphi} N_\text{rec})^{-α} + B\,D^{-β}$ and measure a recurrence-equivalence exponent $\varphi = 0.46$. Intuitively, $\varphi$ tells us whether looping a block $r$ times is equivalent in validation loss to $r$ unique blocks of a non-looped model (full equivalence, $\varphi{=}1$) or to a single block run repeatedly with no capacity gain ($\varphi{=}0$). Our $\varphi = 0.46$ sits in between, so replacing unique blocks with shared recurrences increases validation loss at matched training compute. For example, at $r{=}4$ a 410M looped model performs on par with a 580M non-looped model, but incurs the training cost of a 1B non-looped one. We demonstrate the utility of $\varphi$ as a diagnostic tool on two case studies: commonly used truncated backpropagation lowers $\varphi$ to $0.38$, indicating that the loop mechanism is poorly trained under truncation, even though validation loss decreases. Conversely, hyperconnections raise $\varphi$ to $0.65$, a genuine capacity gain. Our method separates true loop improvements from training-side gains, a distinction raw validation loss cannot make.

Looped Transformers increase computation per token by repeatedly applying a shared backbone, offering a way to improve language modeling and downstream task performance at a fixed backbone parameter count. However, each loop depends on the preceding loop, so increasing recurrent depth also increases decoding latency. Existing approaches include Parallel Loop Transformers, which reduce latency by overlapping loop computation across token positions, but yield rapidly diminishing marginal accuracy gains at larger depths. To address this challenge, we introduce LoopFold, which folds computation at multiple recurrent depths into parallel batches for the same token prefix. A lightweight predictor estimates inputs to later loops so they can start before earlier loops finish. A corrector then refines the outputs of these later loops using newly available results from earlier loops. All components are trained jointly using only the final next-token prediction loss. In experiments with 1.4B models, deeper LoopFold configurations achieve progressively higher average zero-shot accuracy across eight tasks, rising from 53.41% to 56.38%. Vanilla looped models and PLT show limited gains over the same depth range. Compared with a nine-loop vanilla model, LoopFold uses five sequential stages and additional parallel computation to reduce decoding latency by 46%.