BDH-CQ: In-Context Learning with Recurrent Latent Reasoning
This work addresses the challenge of efficiently solving abstract visual reasoning tasks, such as those in ARC-AGI, without explicitly generating intermediate reasoning steps. The authors propose an implicit iterative reasoning architecture that leverages in-context learning to drive recurrent neural memory, enabling iterative refinement of representations in a high-dimensional latent space to answer queries end-to-end—without requiring language-based intermediate rationales. Evaluated on ARC-AGI-1, their 150M-parameter model achieves a pass@2 rate of 29.5%, with a per-task inference cost of merely $0.0007. This result substantially advances the state-of-the-art by establishing a new efficiency frontier, significantly outperforming prior methods on the cost–accuracy Pareto front.