Principled Thoughts for Latent Recursive LLM Systems
Fahd Seddik, Fatemeh Fard
University of British Columbia
Published September 28, 2026 · on the feed September 30, 2026 · ▲ 5 · arXiv 2609.36159
The abstract
Large language models can reason in continuous space instead of decoded text, by recurring on their own hidden states or by passing those states between agents, while training supervises only the Cross-Entropy (CE) of the final decoded answer and does not constrain the thought. Theoretical and empirical analyses establish and confirm four failures of CE-only training that lead to a lower probability of the correct answer such as collapsing thoughts across distinct questions and retaining irrelevant information. We introduce REST (REpresentation-Supervised Thoughts), a training objective that turns four properties of a valid thought representation (causality, minimality, separability, and stability) into differentiable losses added to CE. We instantiate it in latent single-agent and multi-agent systems, without architectural changes or added parameters at inference. Across 7 benchmarks spanning mathematics, science, medicine, and code generation, with the same training data, compute, and latent budget, REST increases accuracy over CE-only training across agent settings and model sizes by up to 7.5 percentage points and convergence on a final answer by 30\%. Furthermore, REST thoughts encode more of what is required to achieve the correct answer, and decoding them better recovers the intended output of the agent, which makes latent communication easier to interpret. Project Website: https://fard-lab.github.io/REST
The Brief
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Transcript
Principled Thoughts for Latent Recursive LLM Systems. By Fahd Seddik and one other, from the University of British Columbia. Published on the twenty-eighth of September. Its code repository is public and real: about twenty-five source files.
Large language models can reason in continuous space rather than in decoded text, either by recurring on their own hidden states or by passing those states between agents. Training such a system usually supervises only one thing: the Cross-Entropy, CE, of the final decoded answer. The thought itself, the latent state in between, is left unconstrained. The authors establish, in theory and then empirically, four failures of training with CE alone, each lowering the probability of the correct answer. Two examples are thoughts collapsing together across distinct questions, and thoughts holding on to irrelevant information.
REST, short for REpresentation-Supervised Thoughts, supervises the thought directly. It takes four properties a valid thought representation should have, causality, minimality, separability and stability, and turns each into a differentiable loss that is added to CE. Instead of hoping a good thought emerges from answer supervision alone, the objective says what a good thought is. Each of the four is a demand on the thought rather than on the answer, which is precisely the part that CE-only training left free.
REST is instantiated in latent systems with a single agent and with multiple agents. It needs no architectural changes, and adds no parameters at inference. The comparison is kept tight: the same training data, the same compute, and the same latent budget as CE-only training. Whatever difference appears comes from the extra losses, not from a bigger model or more training.
The evaluation spans seven benchmarks across mathematics, science, medicine and code generation. Across agent settings and model sizes, REST raises accuracy over CE-only training by up to seven point five percentage points, and convergence on a final answer by thirty percent. The thoughts themselves also change. REST thoughts encode more of what is required to reach the correct answer, and decoding them better recovers the output the agent intended.
That last result carries a second benefit. When agents talk to each other in latent space, a person cannot easily read what passed between them. Thoughts that decode back to their intended meaning make that communication easier to interpret, so the same losses that improve accuracy also open a window onto what the system is thinking.
Paper Quest · 7 chapters · about 39 min
Play this paper
Learn it by doing: make the calls the authors made, guess the result before you see it, and defend it in a viva graded on your own words. Chapter 1 is right here.
Chapter 1 🧩 · The problem
Models can now think without words. The trouble is that training rarely tells those wordless thoughts what to be.
You are building a system where language models reason in hidden states instead of written text: one model loops on its own states, or passes them to another agent.
The road ahead
- 1 · The problem ~6 min When models pass hidden states instead of text, training that only grades the final answer leaves those in-between states free to go wrong.
- 2 · What came before ~3 min
- 3 · The key idea ~8 min REST supervises the thought itself by turning four properties of a valid thought into extra losses added to the answer's cross-entropy.
- 4 · Choose your own research ~3 min
- 5 · Build the method ~8 min Agents pass latent thoughts along a chain, the last one decodes the answer, and training adds thought losses to the answer's cross-entropy.
- 6 · The experiment ~6 min You’ll guess: Adding thought-level losses to CE-only training, with the same data and compute, how large was REST's biggest accuracy gain across settings?
- 7 · The viva ~5 min Three questions from the examiners, answered in your own words. Win it for the paper’s trophy.
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