Prediction Dynamics in Depth-Recurrent Language Models

A dense, pretrained language model can be retrofitted with recurrent depth and learn an iterative latent transition that persists after outcome-only annealing. Qwen2.5-0.5B-Instruct is split into a Prelude, a weight-tied Recurrent Block, and a Coda, with an identity-preserving one-loop path and a re-entry bridge on later loops. At loop 1 the retrofit remains non-inferior to its base on a preregistered ARC battery. Three findings. First, the mechanism is a reusable procedure rather than terminal-answer lookup, and installs at two budgets: 6M trained parameters over frozen base weights and 180M full-block. With intermediate-step supervision, the model computes one task step per loop and persists when only final answers are graded. The adapter matched the full block overall (83.8% versus 84.0%), led through depth 11, and trailed beyond. Verbal fine-tuning reached 79-86% on controlled verbal renderings (zero-shot transfer was minimal), and adapter verbal training begun from the installed mechanism outpaced matched fresh training by 18.6 points, including on a held-out test set. Second, the operation extrapolates to roughly 1.5 times its supervised depth, holding 70% accuracy through depth 18. Third, a same-size scratchpad-trained model matched the recurrent model within its learned horizon but collapsed beyond it. The recurrent model won overall, 84% versus 72%, retained 53% versus 2.5% beyond depth 10, and answered 7.6 times faster. An iterative transformer can therefore perform deeper reasoning in latent space faster than comparable or larger models fine-tuned on the same task, in a system-level comparison. A second task, running the rule in reverse, exposed the limits: the inverse was learnable in isolation, but no continuation acquired it while preserving the installed mechanism and general capability, a catastrophic-interference boundary. Learned depth selection remains open.

When a language model answers a factual question, where does its internal state go? We asked four open models (Llama-3.1-8B, Qwen2.5-7B, Gemma-2-9B and Llama-3.2-1B) 2,256 factual questions whose answers recur, such as the country a person is a citizen of. At every layer, we recorded the state from which the answer is produced. Questions that receive the same answer converge on a shared region of state space, which we summarise by its centre, the answer centroid. The answer becomes readable within a single layer. In every model, the share of questions whose state lies nearest its own answer's centroid jumps at one layer, between 47% and 71% of the way through the network. The centroids follow the answer the model gives rather than the question: the centroid of a country learned from questions about people's citizenship also identifies that country in questions about towns and films. The model also uses the centroids. After the jump, moving the state of a wrongly answered question to the right answer's centroid makes the model give the right answer in 83%-97% of cases late in the network, against 2%-4% for a random move of the same size. Before the jump, moves of the same size almost never work. Near misses, in which the model answers wrongly but picks the right option in multiple choice, can be seen from the onset layer, where the right answer's centroid is already among the nearest to the state. This signal is about as informative as the right answer's rank in the model's final output, and more informative than the model's confidence in its reply.

Looped language models can run more iterations at test time, but additional iterations need not help them solve longer problems. For sequential state tracking, final-answer supervision does not specify how far each iteration should advance, and repeated updates can change the scale of the recurrent state. We introduce Progress-Aligned Recurrence (PAR), which trains the prediction at iteration $k$ to match the state after the first $k$ operations and rescales recurrent states to their first-iteration norms. On swap-$S_5$, a Qwen2.5-0.5B model trained on at most 32 moves achieves 95.5% mean full-state accuracy at 512 moves, or $16\times$ the training length, compared with 55.7% reported for RLT and 0.8% for explicit chain of thought on the same backbone. Controlled $S_5$ ablations show that removing norm anchoring reduces the extrapolation factor from $16\times$ to below $2.2\times$, and replacing progress-aligned targets with final-answer supervision reduces it to at most $8\times$. A learned completion readout selects when to answer without a supplied stopping depth. When intermediate labels are unavailable, prefix self-distillation induces the correspondence from shorter problem prefixes using only final answers. The gains apply across sequential state-tracking tasks, establishing the task structure required for depth extrapolation. These findings support training intermediate predictions and state scale together to make additional recurrent depth useful for longer problems.