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Paper · arXiv

BDH-CQ: In-Context Learning with Recurrent Latent Reasoning

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 poi...

AuthorsBjörn Engdahl, Adrian Kosowski, Jan Chorowski et al.
Primary categorycs.NE
Published10 August 2026
Last updated at source10 August 2026
cs.NEcs.AIcs.LGstat.ML
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