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Capabilities and Fundamental Limits of Latent Chain-of-Thought

Jiaxuan Zou, Yaozhong Xiong, Yong Liu

Characterizes tasks that latent chain-of-thought can express and identifies theoretical and empirical limits of the approach.

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arXiv:2602.01148 · Initial submission: 2026-02-01

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Analysis and evaluation — Measure how well these methods work, investigate what their internal computation does, and identify where they fail. This includes experiments, studies of model internals, and mathematical results.

Continuous-state reasoning — Use vectors—lists of numbers—to carry intermediate reasoning from one step to the next, instead of selecting a text token at every step. Some methods use the model's hidden states; others combine several candidate token representations.

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