GradCuit: Credit-Assigned Gradient Flow Enables Robust and Interpretable Test-Time Latent Reasoning
On the map: LLM reasoning → Test-time compute and efficient thinking
Abstract (arXiv)
Optimization-based latent reasoning improves large language model outputs by optimizing instance-specific continuous states at test time while keeping model parameters frozen. Existing methods, however, typically connect these states to the reasoning trajectory through decoded tokens, making sequence-level credit assignment indirect and obscuring how latent updates shape subsequent reasoning. We introduce GradCuit (gradient through circuit), which inserts optimizable latent states at a selected Transformer layer between the hidden representations of the prompt and the generated continuation. Causal self-attention provides every continuation-token log-probability with a differentiable path to every preceding latent state through the remaining Transformer blocks, enabling reward-weighted gradients from the entire continuation to be assigned directly to the latents. Across five instruction-tuned backbones, three reasoning benchmarks, and two answer formats, GradCuit achieves an average accuracy of 64.5%, outperforming chain-of-thought prompting by 6.6 percentage points and the strongest competing method by 2.4 points. GradCuit also demonstrates greater robustness: across seven learning-rate settings, it consistently outperforms LatentSeek while reducing the standard deviation of accuracy from 1.53 to 0.82, and even its random-walk variant remains competitive with LatentSeek. For interpretability, token-level gradient attribution reveals that latent influence concentrates on reasoning-connector tokens, while layer analysis identifies early-to-middle Transformer layers as the most effective optimization space. By directly optimizing internal reasoning from outcome feedback, GradCuit opens a new axis of robust and interpretable test-time scaling, where LLMs adapt how they reason rather than merely regenerate, sample, or rerank outputs.
Key facts. No citing papers in the map yet (data through 7 Oct 2026). Placed in Test-time compute and efficient thinking, one of 17 directions in LLM reasoning. Builds on 38 of its 43 references that are in the map. First posted on arXiv 3 Aug 2026.
Builds on
38 of 43 references.
Closest ancestors · 6
Same direction, newest first
- 2025Thinking on the Fly: Test-Time Reasoning Enhancement via Latent Thought Policy Optimization5 Oct
- 2025Seek in the Dark: Reasoning via Test-Time Instance-Level Policy Gradient in Latent Space19 May
- 2025Wider or Deeper? Scaling LLM Inference-Time Compute with Adaptive Branching Tree Search6 Mar
- 2025Multi-Agent Verification: Scaling Test-Time Compute with Multiple Verifiers27 Feb
- 2024Compressed Chain of Thought: Efficient Reasoning Through Dense Representations17 Dec
- 2024Language Models are Hidden Reasoners: Unlocking Latent Reasoning Capabilities via Self-Rewarding6 Nov
Other references · 32
- 2022Training language models to follow instructions with human feedbackcited by 15,712
- 2017Proximal Policy Optimization Algorithmscited by 14,441
- 2022Chain-of-Thought Prompting Elicits Reasoning in Large Language Modelscited by 12,302
- 2021Training Verifiers to Solve Math Word Problemscited by 9,743
- 2024DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Modelscited by 8,851
- 2023Direct Preference Optimization: Your Language Model is Secretly a Reward Modelcited by 7,916
- 2025DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement Learningcited by 6,146
- 2022Self-Consistency Improves Chain of Thought Reasoning in Language Modelscited by 5,601
- 2021Measuring Mathematical Problem Solving With the MATH Datasetcited by 5,203
- 2022Large Language Models are Zero-Shot Reasonerscited by 4,323
- 2021Prefix-Tuning: Optimizing Continuous Prompts for Generationcited by 3,878
- 2021The Power of Scale for Parameter-Efficient Prompt Tuningcited by 3,769
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- 2022Least-to-Most Prompting Enables Complex Reasoning in Large Language Modelscited by 1,397
- 2023Reasoning with Language Model is Planning with World Modelcited by 846
- 2019Plug and Play Language Models: A Simple Approach to Controlled Text Generationcited by 793
- 2024Training Large Language Models to Reason in a Continuous Latent Spacecited by 763
- 2019CTRL: A Conditional Transformer Language Model for Controllable Generationcited by 754
- 2021GPT Understands, Toocited by 715
- 2024Learning to (Learn at Test Time): RNNs with Expressive Hidden Statescited by 329
- 2023Statistical Rejection Sampling Improves Preference Optimizationcited by 321
- 2023Reward Design with Language Modelscited by 257
- 2024From Explicit CoT to Implicit CoT: Learning to Internalize CoT Step by Stepcited by 225
- 2025CODI: Compressing Chain-of-Thought into Continuous Space via Self-Distillationcited by 216
- 2023Test-Time Training on Nearest Neighbors for Large Language Modelscited by 82
- 2022Recitation-Augmented Language Modelscited by 65
- 2026Verbalizable Representations Form a Global Workspace in Language Modelscited by 59
- 2025Amulet: ReAlignment During Test Time for Personalized Preference Adaptation of LLMscited by 29
- 2025Reasoning Within the Mind: Dynamic Multimodal Interleaving in Latent Spacecited by 25
- 2025MILR: Improving Multimodal Image Generation via Test-Time Latent Reasoningcited by 8
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- 2026Thinking in Latents: Adaptive Anchor Refinement for Implicit Reasoning in LLMs
- 2025Scaling up Test-Time Compute with Latent Reasoning: A Recurrent Depth Approach
- 2026Latent Thought Flow: Efficient Latent Reasoning in Large Language Models
- 2025Encode, Think, Decode: Scaling test-time reasoning with recursive latent thoughts
- 2026Efficient Reasoning via Constrained Optimization in Latent Space