LSTM-Style Looped Transformers with Shared KV Caches

Transformers process tokens in parallel but are temporally shallow: at position $t$, each layer attends to key-value pairs computed based on the previous layer, yielding a depth capped by the number of layers. Recurrent models offer unbounded temporal depth but suffer from optimization instability and historically underutilize modern accelerators. We introduce the Recurrent Transformer, a simple architectural change where each layer attends to key-value pairs computed off its own activations, yielding layerwise recurrent memory while preserving standard autoregressive decoding cost. We show that the architecture can emulate both (i) a conventional Transformer and (ii) token-to-token recurrent updates under mild assumptions, while avoiding optimization instability. Naively, prefill/training appears bandwidth-bound with effective arithmetic intensity near $1$ because keys and values are revealed sequentially; we give an exact tiling-based algorithm that preserves the mathematical computation while reducing HBM traffic from $Θ(N^2)$ to $Θ(N\log N)$, increasing effective arithmetic intensity to $Θ(N/\log N)$ for sequence length $N$. On 150M and 300M parameter C4 pretraining, Recurrent Transformers improve cross-entropy over a parameter-matched Transformer baseline and achieve the improvement with fewer layers (fixed parameters), suggesting that recurrence can trade depth for width, thus reducing KV cache memory footprint and inference latency.

Looped Transformers apply the same layers several times per token, adding compute to improve quality without more parameters. Each recursion, however, writes its own key-value cache, so memory still grows with compute. Inference-time techniques can shrink this cache at a cost in quality. We pretrain looped language models to share memory: only the first recursion writes a cache, and later recursions read it while keeping a short window of their own. Surprisingly, we find that sharing memory does not cost quality and instead improves it. At 150M-1B parameters, our Looped Prediction Transformer (LPT) and its hybrid variant set a new quality-memory frontier for looped models: with five recursions, the hybrid lowers validation perplexity on FineWeb-Edu by 1.12-1.82 relative to a same-size standard Transformer while using 76-79% less context memory. Through an extensive analysis, we investigate why memory sharing helps. Shared and local memory develop different representations, and later recursions attend mostly to the shared memory, which also acts as a gradient highway to the first recursion.

We study Latent Recurrent Transformer (LRT), a lightweight augmentation of autoregressive transformers that reuses a high-level source-layer hidden state from the previous token as recurrent memory for the next token. Because this state is already computed during ordinary decoding, LRT introduces a cross-token, cross-layer latent pathway while preserving the standard attention mechanism, KV-cache interface, and one model forward per generated token. To pretrain this recurrence without sequentially unrolling the full sequence, we introduce interleaved parallel training: one full-sequence initialization forward constructs a shared buffer, followed by sequential refinement of disjoint position subsets with parallel computation within each subset. This provides every token with recurrent-memory-aware supervision at approximately 2x ideal token compute. Across 1.3B- and 2.1B-parameter nanochat-style backbones and a wide range of training budgets, LRT improves both BPB and CORE under matched effective compute. Additionally, LRT outperforms two-forward PonderLM-2 and matches a three-loop Transformer in BPB, while retaining one-forward-per-token decoding with 9% latency overhead over the standard Transformer.