Enabling Dynamic Computation in Looped LMs

arXiv cs.AIOctober 8, 2026en

arXiv:2610.09013v1 Announce Type: new Abstract: Looped LMs are parameter efficient and promise dynamic computation (saving memory and FLOPs on easy tokens). However, state-of-the-art open Looped LMs trained with this dynamic computation capability (Ouro models) do not realize it in practice as each loop iteration (depth) requires its own level of KV-cache, necessitating all loop computations. Moreover, Ouro's early-exit prior is enforced on each token equally, which results in static lower-depth like processing of all tokens regardless of difficulty. In this work, we propose a simple "best-available" KV caching strategy that works out-of-the-box, creating a new frontier in the performance vs

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