Reasoning with Continuous Latent Diffusion

Continuous diffusion generates complete reasoning solutions through iterative refinement in latent space. We introduce Latent Flow Reasoning Models (LFRMs), an ELF-based training and inference recipe. Our experiments show that accurate decoding alone does not ensure strong reasoning performance. We therefore learn compact representations from multiple layers of a strong autoregressive teacher. Their decomposition also enables asynchronous denoising at different rates. We show that prompt encodings need only preserve the information required for the correct text-conditional score, rather than exactly match teacher features, and use a staged curriculum to learn a compact prompt encoder that replaces the teacher Transformer at inference. We adapt DiffusionNFT to learned self-conditioning guidance and incorporate gold-solution endpoints to supplement sparse rewards. Our supervised models outperform reported results from recent continuous-diffusion baselines at comparable backbone scales on mathematical reasoning and HumanEval code generation. With a 638M-parameter denoising backbone and learned prompt conditioning, post-NFT LFRM-L achieves 63.74% pass@1 on GSM8K and 24.6% on MATH500 at 64 denoising steps, and 32.85% on HumanEval and 30.18% on HumanEval+ at 128 denoising steps. Code will be available at: https://github.com/chengxiang/LFRM