# Thinking in Latents: Adaptive Anchor Refinement for Implicit Reasoning in LLMs

arXiv: https://arxiv.org/abs/2603.15051 · HTML: https://mlsanity.com/paper/2603.15051/

## Key facts

- Cited by 5 papers in the map (data through 14 Oct 2026).
- Placed in Test-time compute and efficient thinking, one of 17 directions in LLM reasoning.
- Builds on 24 of its 25 references that are in the map.
- First posted on arXiv 16 Mar 2026.

## Placed in

- LLM reasoning / [Test-time compute and efficient thinking](https://mlsanity.com/lr/test-time-compute-and-efficient-thinking/)

## Builds on (most cited first, 24 of 24)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Training Verifiers to Solve Math Word Problems](https://mlsanity.com/paper/2110.14168/) (2021)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [Prefix-Tuning: Optimizing Continuous Prompts for Generation](https://mlsanity.com/paper/2101.00190/) (2021)
- [The Power of Scale for Parameter-Efficient Prompt Tuning](https://mlsanity.com/paper/2104.08691/) (2021)
- [Are NLP Models really able to Solve Simple Math Word Problems?](https://mlsanity.com/paper/2103.07191/) (2021)
- [Training Large Language Models to Reason in a Continuous Latent Space](https://mlsanity.com/paper/2412.06769/) (2024)
- [Adaptive Computation Time for Recurrent Neural Networks](https://mlsanity.com/paper/1603.08983/) (2016)
- [Solving General Arithmetic Word Problems](https://mlsanity.com/paper/1608.01413/) (2016)
- [Better & Faster Large Language Models via Multi-token Prediction](https://mlsanity.com/paper/2404.19737/) (2024)
- [Quiet-STaR: Language Models Can Teach Themselves to Think Before Speaking](https://mlsanity.com/paper/2403.09629/) (2024)
- [Think before you speak: Training Language Models With Pause Tokens](https://mlsanity.com/paper/2310.02226/) (2023)
- [Reasoning with Latent Thoughts: On the Power of Looped Transformers](https://mlsanity.com/paper/2502.17416/) (2025)
- [From Explicit CoT to Implicit CoT: Learning to Internalize CoT Step by Step](https://mlsanity.com/paper/2405.14838/) (2024)
- [CODI: Compressing Chain-of-Thought into Continuous Space via Self-Distillation](https://mlsanity.com/paper/2502.21074/) (2025)
- [Implicit Chain of Thought Reasoning via Knowledge Distillation](https://mlsanity.com/paper/2311.01460/) (2023)
- [Sketch-of-Thought: Efficient LLM Reasoning with Adaptive Cognitive-Inspired Sketching](https://mlsanity.com/paper/2503.05179/) (2025)
- [SoftCoT: Soft Chain-of-Thought for Efficient Reasoning with LLMs](https://mlsanity.com/paper/2502.12134/) (2025)
- [Token Assorted: Mixing Latent and Text Tokens for Improved Language Model Reasoning](https://mlsanity.com/paper/2502.03275/) (2025)
- [Think Silently, Think Fast: Dynamic Latent Compression of LLM Reasoning Chains](https://mlsanity.com/paper/2505.16552/) (2025)

## Built on by (most cited first, 5 of 5)

- [Formalizing Latent Thoughts: Four Axioms of Thought Representation in LLMs](https://mlsanity.com/paper/2606.27378/) (2026)
- [Invariant Reasoning Directions in Latent Trajectories of Language Models](https://mlsanity.com/paper/2606.29164/) (2026)
- [HALO: Hybrid Adaptive Latent Reasoning for Language Models](https://mlsanity.com/paper/2607.08775/) (2026)
- [Principled Thoughts for Latent Recursive LLM Systems](https://mlsanity.com/paper/2609.36159/) (2026)
- [Dynamic K-Head: Difficulty-Supervised Budget Selection for Continuous Latent Reasoning](https://mlsanity.com/paper/2610.17679/) (2026)

## Abstract (arXiv)

Token-level Chain-of-Thought (CoT) prompting has become a standard way to elicit multi-step reasoning in large language models (LLMs), especially for mathematical word problems. However, generating long intermediate traces increases output length and inference cost, and can be inefficient when the model could arrive at the correct answer without extensive verbalization. This has motivated latent-space reasoning approaches that shift computation into hidden representations and only emit a final answer. Yet, many latent reasoning methods depend on a fixed number of latent refinement steps at inference, adding another hyperparameter that must be tuned across models and datasets to balance accuracy and efficiency. We introduce AdaAnchor, a latent reasoning framework that performs silent iterative computation by refining a set of latent anchor vectors attached to the input. AdaAnchor further incorporates an adaptive halting mechanism that monitors anchor stability across iterations and terminates refinement once the anchor dynamics converge, allocating fewer steps to easier instances while reserving additional refinement steps for harder ones under a shared maximum-step budget. Our empirical evaluation across three mathematical word-problem benchmarks shows that AdaAnchor with adaptive halting yields accuracy gains of up to 5% over fixed-step latent refinement while reducing average latent refinement steps by 48-60% under the same maximum-step budget. Compared to standard reasoning baselines, AdaAnchor achieves large reductions in generated tokens (92-93%) by moving computation into silent latent refinement, offering a different accuracy-efficiency trade-off with substantially lower output-token usage.