The arc-AGI results from O3 are apparently a result of chain of thought given enough time to explore a solution space. Reasoning might be simply a higher dimensional form of rubix cube solving. BFS, search, back-tracking, etc. It seems unlikely that humans think in “tokens” so why do LLMs?
By staying in latent space, the models are free to describe an “idea” in higher resolution than what language allows. English is coarse, granular. Latent space is a much finer representation of ideas and their interplay.
Latent space is also much cheaper to execute in. The model can think without the language encoding/decoding step. This lets it branch out hundreds of ideas and explore only the most useful ones in a fraction of time that reasoning “out-loud” would take.
The states also don’t need to be tied to language. Feed in a robot’s state, time series data, or any abstract data. Reason in category theory or linear algebra or complex analysis. Humans are hard wired for one set of math - an abstract latent space can represent anything.
I’m a bit disappointed OpenAI didn’t stumble on this first. I’ve been skeptical of LLMs since their big debut last year. LLMs seem like a great way of solving language, but reasoning is much more complex. Once you grok the math behind the current models, you immediately question why the encoding/decoding step is there. Diffusion models are incredible but it felt that LLMs lacked the same creativity. Encoding/decoding forces a token-based discretization and therefore a loss of complexity.
With the byte-latent paper it was quite clear we’d see this paper. This truly might be the “it” moment.