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A Survey on Latent Reasoning

Paper · 2025 · Rui-Jie Zhu, Tianhao Peng, Tianhao Cheng et al.

Summary

Chain-of-thought prompting makes LLMs reason step by step in written language, but each generated token carries very little information. This limits the model's capacity to think and adds redundant computation. This survey reviews latent reasoning, where the model performs multi-step inference inside its continuous hidden representations and never verbalizes intermediate steps. The authors give a unified formal framework and organize the literature into two families. Vertical recurrence reuses layers to gain computational depth. Horizontal recurrence evolves a compressed hidden state across time. They also cover fine-tuning methods that compress or internalize explicit reasoning traces, and mechanistic interpretability work on how layers specialize into an implicit reasoning pipeline. The survey closes with "infinite-depth" reasoning: text diffusion models that refine a whole sequence in parallel, and optimization-over-time views such as test-time training. It runs no new experiments. Its value is a coherent taxonomy and research map for a fast-moving area, along with a curated paper list.

Key points

  • Bandwidth gap: An explicit token carries about 15 bits. A 2560-dimensional FP16 hidden state carries about 40,960 bits, roughly 2.7×10³ times more.
  • Taxonomy:
    • Vertical/activation-based methods include Universal Transformer, CoTFormer and Recurrent-Depth.
    • Horizontal/hidden-state methods include RetNet, Mamba-2, Gated DeltaNet, TTT, Titans and Atlas.
    • Training-induced latent CoT includes Coconut, CODI, CCOT and pause/filler tokens.
  • Diffusion as infinite-depth reasoning: The survey groups text diffusion models into three types:
    • masked models (D3PM, SEDD, LLaDA, MMaDA)
    • embedding-based models (Diffusion-LM, Plaid, TESS)
    • hybrid AR-diffusion models (DiffuLLaMA, Dream, Gemini Diffusion, Mercury)
  • Reported figures:
    • Titans-S (~250M parameters) matches a 1.3B Transformer on 1-shot recall.
    • LaCT scales the fast-weight state to as much as 40% of model parameters.
    • Implicit fixed-point RNNs need at most 16 iterations for most tokens.
  • No head-to-head comparison: The authors note that training setups and benchmarks are inconsistent across studies, so a direct comparison is not possible. Papers are collected in the LatentCoT-Horizon GitHub repository.

Our summary of the paper, in our own words — not its text. The work belongs to its authors; read it at the links above.

 Fields, topics and concepts

Cite

Cite as Rui-Jie Zhu, Tianhao Peng, Tianhao Cheng, Xingwei Qu, Jinfa Huang, Dawei Zhu, Hao Wang, Kaiwen Xue, Xuanliang Zhang, Yong Shan, Tianle Cai, Taylor Kergan, Assel Kembay, Andrew Smith, Chenghua Lin, Binh Nguyen, Yuqi Pan, Yuhong Chou, Zefan Cai, Zhenhe Wu, Yongchi Zhao, Tianyu Liu, Jian Yang, Wangchunshu Zhou, Chujie Zheng, Chongxuan Li, Yuyin Zhou, Zhoujun Li, Zhaoxiang Zhang, Jiaheng Liu, Ge Zhang, Wenhao Huang and Jason Eshraghian. 2025. A Survey on Latent Reasoning. arXiv:2507.06203.

The paper itself, not this page. BibTeX from the library's record of the work. DOI 10.48550/arxiv.2507.06203 · arXiv 2507.06203

@misc{zhu2025survey,
  title = {{A Survey on Latent Reasoning}},
  author = {Rui-Jie Zhu, Tianhao Peng, Tianhao Cheng, Xingwei Qu, Jinfa Huang, Dawei Zhu, Hao Wang, Kaiwen Xue, Xuanliang Zhang, Yong Shan, Tianle Cai, Taylor Kergan, Assel Kembay, Andrew Smith, Chenghua Lin, Binh Nguyen, Yuqi Pan, Yuhong Chou, Zefan Cai, Zhenhe Wu, Yongchi Zhao, Tianyu Liu, Jian Yang, Wangchunshu Zhou, Chujie Zheng, Chongxuan Li, Yuyin Zhou, Zhoujun Li, Zhaoxiang Zhang, Jiaheng Liu, Ge Zhang, Wenhao Huang and Jason Eshraghian},
  year = {2025},
  doi = {10.48550/arxiv.2507.06203},
  eprint = {2507.06203},
  archivePrefix = {arXiv},
  url = {https://doi.org/10.48550/arxiv.2507.06203}
}

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