Beyond the Autoregressive Horizon: A Comprehensive Survey of Diffusion Models, World Modelling, and State Space Models for Code

Recent advances in reasoning Large Language Models (LLMs) have primarily relied on upfront thinking, where reasoning occurs before final answer. However, this approach suffers from critical limitations in code generation, where upfront thinking is often insufficient as problems' full complexity only reveals itself during code implementation. Moreover, it cannot adaptively allocate reasoning effort throughout the code generation process where difficulty varies significantly. In this paper, we propose Think-Anywhere, a novel reasoning mechanism that enables LLMs to invoke thinking on-demand at any token position during code generation. We achieve Think-Anywhere by first teaching LLMs to imitate the reasoning patterns through cold-start training, then leveraging outcome-based RL rewards to drive the model's autonomous exploration of when and where to invoke reasoning. Extensive experiments on four mainstream code generation benchmarks (i.e., LeetCode, LiveCodeBench, HumanEval, and MBPP) show that Think-Anywhere achieves state-of-the-art performance over both existing reasoning methods and recent post-training approaches, while demonstrating consistent generalization across diverse LLMs. Our analysis further reveals that Think-Anywhere enables the model to adaptively invoke reasoning at high-entropy positions, providing enhanced interpretability.

Language generation is almost universally treated as a sequential process: autoregressive models emit one token at a time, while diffusion language models replace token-level seriality with a long trajectory of iterative refinement. In this work, we introduce PlaidQ, a 0.7B continuous diffusion language model for code generation, and show that its trajectory can be aggressively distilled into only a few denoising steps---or even one, enabling efficient code generation. PlaidQ repurposes a pretrained autoregressive model as a bidirectional denoiser over continuous token embeddings. We distill PlaidQ with distribution matching for few-step generation and paired-trajectory supervision for one-step generation. At matched model scale, PlaidQ is competitive with discrete diffusion language models on code generation. Distillation then shifts the quality--compute frontier: a 16-step student reaches 31.78 and 40.49 pass@10 on HumanEval and MBPP+, surpassing the same PlaidQ teacher sampled for 512 steps. At the extreme, paired-trajectory distillation achieves 7.07 pass@1 on HumanEval with a single denoising step, producing functionally correct programs. Together, these results establish continuous diffusion as a viable path to few-step and one-step code generation. Broadly, continuous diffusion is not merely another representation for language: it provides an interface through which language models can inherit the acceleration and distillation machinery of continuous diffusion modeling. Training and inference code and model checkpoints are available at https://github.com/pengzhangzhi/plaidq.

Existing code reasoning methods primarily supervise final code outputs, ignoring intermediate states, often leading to reward hacking where correct answers are obtained through inconsistent reasoning. We propose StepCodeReasoner, a framework that introduces explicit intermediate execution-state supervision. By automatically inserting structured print-based execution-trace anchors into code, the model is trained to predict runtime states at each step, transforming code reasoning into a verifiable, stepwise execution modeling problem. Building on this execution-aware method, we introduce Bi-Level GRPO, a reinforcement learning algorithm for structured credit assignment at two levels: inter-trajectory, comparing alternative execution paths, and intra-trajectory, rewarding intermediate accuracy based on its impact on downstream correctness. Extensive experiments demonstrate that StepCodeReasoner achieves SOTA performance in code reasoning. In particular, our 7B model achieves 91.1% on CRUXEval and 86.5% on LiveCodeBench, outperforming the CodeReasoner-7B baseline (86.0% and 77.7%) and GPT-4o (85.6% and 75.1%). Furthermore, on the execution-trace benchmark REval, our model scores 82.9%, outperforming baseline CodeReasoner-7B (72.3%), its 14B counterpart (81.1%), and GPT-4o (77.3%). Additionally, our approach also improves code generation performance, demonstrating that explicit execution modeling enhances both code reasoning and code generation.