BDH-CQ: In-Context Learning with Recurrent Latent Reasoning
Authors: Björn Engdahl, Adrian Kosowski, Jan Chorowski, Zuzanna Stamirowska, Przemysław Uznański, Junlin Jiang, Rohan Phadke, Remigiusz Kinas, +1 more
Abstract
We introduce BDH-CQ, a reasoning model that combines in-context learning with recurrent latent reasoning. Inputs presented at inference time continuously update the model's recurrent memory; the model then solves a query through iterative computation in a high-dimensional latent space, without verbalizing its intermediate reasoning. We evaluate the model on the public ARC-AGI-1 evaluation set and use controlled ARC-like interventions to study what it learns from demonstrations, how consistently it applies an inferred transformation, and which concepts remain difficult. A 150M-parameter configuration reaches 29.5% pass@2 at a computed inference cost of $0.0007 per task. This operating point breaks through the previously reported ARC-AGI-1 cost-accuracy Pareto frontier, establishing a new state of the art in benchmark cost efficiency.
Large language models achieve strong reasoning performance by scaling inference-time compute, yet remain fundamentally stateless, discarding the rich, self-produced reasoning traces generated during this process. We investigate whether models can instead learn online from this experience, converting transient computation (reasoning traces) into persistent reusable knowledge, and without external supervision or access to future data. We show that In-Context Learning (ICL) over raw reasoning traces fails to generalize, reflecting a fundamental limitation of token-level reuse: individual traces lack the abstraction needed for transfer, even after refinement (e.g. self-reflection). In contrast, drawing inspiration from recent works on unsupervised reinforcement learning, we find that lightweight per-instance training with self-generated test-time signals (majority voting) as rewards yields substantial gains, often surpassing full-dataset offline training, motivating a shift from raw traces to learned latent representations. Building on this insight, we propose an online method that distills inference-time compute spent on encountered problems into compact modular latent memories capturing the underlying reasoning structure. These memories are stored and retrieved for future inputs, enabling continual improvement while avoiding catastrophic forgetting through modular design. Importantly, our method is highly efficient, parametrized as extremely lightweight soft prompt memories (~0.001% of model parameters) and trained with only a few gradient steps, yet achieving performance competitive with full parametric updates and offline training. Across challenging mathematical reasoning benchmarks, our approach significantly outperforms zero-shot and raw data ICL baselines, while transferring effectively across datasets.
As the widespread adoption of Large Language Models (LLMs) accelerates, token consumption from intermediate reasoning traces increasingly contributes to inference latency and operational cost. Recent studies suggest that many real-world tasks require little to no explicit reasoning, with additional reasoning sometimes even degrading performance. In this work, we propose Post-Reasoning, a simple yet effective approach that improves instruction-tuned models by conditioning them to justify their answers after generating the final response. By design, it enables the final answer to be obtained without additional latency or token cost, while still improving performance through simple instruction augmentation. We evaluate Post-Reasoning across 117 model--benchmark settings spanning 13 open and proprietary models, 4 model families, and 9 diverse reasoning and knowledge-intensive benchmarks, including AMC, HMMT, GSM8K, GPQA, MMLU-Pro, and BIG-Bench Hard. Post-Reasoning improves performance in over 88.19% of evaluated settings, achieving a mean relative improvements of 17.37%. Furthermore, we propose supervised post-reason tuning, which further improves performance in over 91.11% of evaluated settings, and exceeds the prompt-based post-reasoning baseline by an average of 8.01%, demonstrating that post-reasoning can be effectively internalized through training. Ultimately, Post-Reasoning establishes a new performance ceiling for direct-answer capabilities.
Richmond Sin Jing Xuan, Rishabh Bhardwaj, Soujanya Poria
Modern language models reason within bounded context, an inherent constraint that poses a fundamental barrier to long-horizon reasoning. We identify recursion as a core principle for overcoming this barrier, and propose recursive models as a minimal realization, where the model can recursively invoke itself to solve subtasks in isolated contexts. We prove that any computable problem admits a recursive decomposition of reasoning in which each subtask requires only exponentially smaller active context than standard autoregressive models; this strictly surpasses any context management approach confined to a single sequence, such as summarization. We further generalize our framework to modern agentic systems with arbitrary context processing and control flows, and prove that recursive models can achieve optimal power within this broader class. Experimentally, we test two settings: fine-tuning a pretrained base model for recursive SAT solving, and training a small model from scratch on Go traces generated by exact game-tree search. Both show improved long-horizon accuracy with small active contexts.