I certainly think you could say both of those are reasoning in latent space. But of course people can have different definitions of what they consider reasoning. Maybe this is because I think it's hard to pin down what "reasoning" is so I instead alias it to "computation" which both of those examples do.
• Parameter efficiency. 1.4B and 2.6B parameter looping Ouro models match 4B and 8B transformers on most benchmarks.
• Adaptive computation. Looping is trained in a novel way to avoid exiting too early or too late.
• Reasons to use looping. Looping does not increase raw knowledge storage (approximately 2 bits per parameter for looped and non-looped models) but dramatically enhances knowledge manipulation capabilities.
• Improved safety and adherence. They find that safety and alignment of CoT to final output improves as recurrent steps increase.
I thought a looped transformer is in fact reasoning more in latent space, though "reasoning" in a somewhat different way from the standard reasoning token approach.
1. coarse grained processing
2. fine grained processing
Tokens are coarse grained processing. While I agree that during a token generation, that processing is fine grained.
But Looping is fine grained processing or reasoning and it is not limited to discrete tokens within passes. This is qualitatively different because a lot more "stuff" happens between tokens. You are right that it is similar to a larger model but then even COT is similar to using a larger model.