Large Language Models (LLMs) have demonstrated remarkable performance in many applications, including challenging reasoning problems via chain-ofthought (CoT) techniques that generate "thinking tokens" before answering the questions. While existing theoretical works demonstrate that CoT with discrete tokens boosts the capability of LLMs, recent work on continuous CoT lacks a theoretical understanding of why it outperforms discrete counterparts in various reasoning tasks, such as directed graph reachability, a fundamental graph reasoning problem that includes many practical domain applications as special cases. In this paper, we prove that a two-layer transformer with D steps of continuous CoT can solve the directed graph reachability problem, where Dis the diameter of the graph, while the best known result of constant-depth transformers with discrete CoT requires O(n2) decoding steps where n is the number of vertices (D < n). In our construction, each continuous thought vector is a superposition state that encodes multiple search frontiers simultaneously (i.e., parallel breadth-first search (BFS)), while discrete CoT must choose a single path sampled from the superposition state, which leads to a sequential search that requires many more steps and may be trapped in local solutions. We also performed extensive experiments to verify that our theoretical construction aligns well with the empirical solution obtained via training dynamics. Notably, encoding of multiple search frontiers as a superposition state automatically emerges in training continuous CoT, without explicit supervision to guide the model to explore multiple paths simultaneously.

Large Language Models (LLMs) have demonstrated remarkable performance in many applications, including challenging reasoning problems via chain-of-thoughts (CoTs) techniques that generate ``thinking tokens'' before answering the questions. While existing theoretical works demonstrate that CoTs with discrete tokens boost the capability of LLMs, recent work on continuous CoTs lacks a theoretical understanding of why it outperforms discrete counterparts in various reasoning tasks such as directed graph reachability, a fundamental graph reasoning problem that includes many practical domain applications as special cases. In this paper, we prove that a two-layer transformer with $D$ steps of continuous CoTs can solve the directed graph reachability problem, where $D$ is the diameter of the graph, while the best known result of constant-depth transformers with discrete CoTs requires $O(n^2)$ decoding steps where $n$ is the number of vertices ($D

Chain-of-Thought (CoT) enhances Large Language Models (LLMs) by enabling step-by-step reasoning in natural language. However, the language space may be suboptimal for reasoning. While implicit CoT methods attempt to enable reasoning without explicit CoT tokens, they have consistently lagged behind explicit CoT method in task performance. We propose CODI (Continuous Chain-of-Thought via Self-Distillation), a novel framework that distills CoT into a continuous space, where a shared model acts as both teacher and student, jointly learning explicit and implicit CoT while aligning their hidden activation on the token generating the final answer. CODI is the first implicit CoT method to match explicit CoT's performance on GSM8k while achieving 3.1x compression, surpassing the previous state-of-the-art by 28.2% in accuracy. Furthermore, CODI demonstrates scalability, robustness, and generalizability to more complex CoT datasets. Additionally, CODI retains interpretability by decoding its continuous thoughts, making its reasoning process transparent. Our findings establish implicit CoT as not only a more efficient but a powerful alternative to explicit CoT.

Large language models (LLMs) are restricted to reason in the "language space", where they typically express the reasoning process with a chain-of-thought (CoT) to solve a complex reasoning problem. However, we argue that language space may not always be optimal for reasoning. For example, most word tokens are primarily for textual coherence and not essential for reasoning, while some critical tokens require complex planning and pose huge challenges to LLMs. To explore the potential of LLM reasoning in an unrestricted latent space instead of using natural language, we introduce a new paradigm Coconut (Chain of Continuous Thought). We utilize the last hidden state of the LLM as a representation of the reasoning state (termed "continuous thought"). Rather than decoding this into a word token, we feed it back to the LLM as the subsequent input embedding directly in the continuous space. Experiments show that Coconut can effectively augment the LLM on several reasoning tasks. This novel latent reasoning paradigm leads to emergent advanced reasoning patterns: the continuous thought can encode multiple alternative next reasoning steps, allowing the model to perform a breadth-first search (BFS) to solve the problem, rather than prematurely committing to a single deterministic path like CoT. Coconut outperforms CoT in certain logical reasoning tasks that require substantial backtracking during planning, with fewer thinking tokens during inference. These findings demonstrate the promise of latent reasoning and offer valuable insights for future research.