Everything on Reasoning Capabilities

Chain-of-thought prompting is limited by the model's pre-existing knowledge and discrete token space. Recursive latent reasoning allows models to discover new algorithms from first principles, surpassing the constraints of human-labeled data.

Impact: Unlocks the potential for AI to innovate and solve novel problems without relying on historical human data, moving closer to true artificial general intelligence.

— from Recursive AI Models Outperform Scaling Laws · Y Combinator Startup Podcast· May 01, 2026