Pretraining and Test-Time Training Budgets Matter for ARC: A Controlled Study of VARC and TRM

The Abstraction and Reasoning Corpus and related benchmarks evaluate whether AI models can solve novel reasoning tasks, but often leave unclear whether success reflects inference of the intended underlying rule or reliance on shortcuts. We address this gap by studying test-time task embeddings in Vision ARC (VARC), a model in which a pre-trained backbone is complemented by a trainable embedding representing the transformation rule. In the original VARC, test-time training (TTT) is jointly applied to the backbone and task embedding. Here we introduce a novel two-step TTT protocol: first finetune only the task embedding (Embed-TTT), then freeze it and finetune the backbone. Across ARC-AGI-1, ConceptARC, and two controlled datasets with known rules, Embed-TTT consistently yields improved task embeddings, ones that align better with underlying task rules, improve embedding-based retrieval, and enable accurate linear probing of known rules. Qualitatively, Embed-TTT identifies more semantically meaningful relations between test and train tasks on ARC-AGI-1. We also show that optimizing only task embeddings (less than 0.01% of model parameters) already solves a non-trivial fraction of ARC-AGI-1, ConceptARC, and Mini-ARC tasks, while the full two-step pipeline improves final performance. Finally, we show that Embed-TTT recovers the underlying geometric structure of parametric rules and learns compositional capabilities that enable rule-wise interpolation, but not extrapolation. These findings support a clearer separation between rule induction and rule execution in ARC-like evaluations, motivating benchmarks that better distinguish in-distribution from out-of-distribution rules.

The Abstraction and Reasoning Corpus (ARC) contains tasks that require summarizing patterns from limited grid samples and predicting output grids. Recently, many large language model based approaches have attempted to transform it into a text-based reasoning task. However, methods based on open-source models have generally yielded unsatisfactory results, while those relying on closed-source models are too costly. Current efforts mainly focus on data augmentation, constructing ARC-like data for more comprehensive supervised fine-tuning. In this work, we argue that solving ARC-like problems requires not only positive sample supervision but also the ability to improve model reasoning by distinguishing negative samples. To this end, we draw on the idea of preference alignment and propose DiARC, a method that constructs preference pairs to enable the model to distinguish between them. Specifically, we propose three ways to construct negative samples, including output-level visual transformations, DSL-level rule inversion, and task-specific rule editing. The resulting negative samples provide informative near-miss alternatives while keeping the observed demonstrations unchanged. Experimental results across multiple ARC-like benchmarks show that DiARC consistently improves performance over baseline models. The code is released at https://github.com/szu-tera/DiARC.

Tiny Recursive Models (TRMs) have recently demonstrated remarkable performance on ARC-AGI, showing that very small models can compete against large foundation models through a two-step refinement mechanism that updates an internal reasoning state $z$ and the predicted output $y$. Naturally, such refinement is of interest for any predictor; it is therefore natural to wonder whether the TRM mechanism could be effectively re-adopted in autoregressive models. However, TRMs cannot be simply compared to standard models because they lack causal predictive structures and contain persistent latent states that make it difficult to isolate specific performance gains. In this paper, we propose the Autoregressive TRM and evaluate it on small autoregressive tasks. To understand its efficacy, we propose a suite of models that gradually transform a standard Transformer to a Tiny Autoregressive Recursive Model in a controlled setting that fixes the block design, token stream, and next-token objective. Across compute-matched experiments on character-level algorithmic tasks, we surprisingly find that there are some two-level refinement baselines that show strong performance. Contrary to expectations, we find no reliable performance gains from the full Autoregressive TRM architecture. These results offer potential promise for two-step refinement mechanisms more broadly but caution against investing in the autoregressive TRM-specific model as a fruitful research direction.