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Enabling Dynamic Computation in Looped LMs

Aayush Mishra Arnau Padr\'es Masdemont Victor Conchello Vendrell Jordi Ros Giralt Arash Behboodi Fabio Valerio Massoli
Oct 2026
Artificial Intelligence

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 depth space. Our approach enables up to 30% reduction in FLOPs and KV memory while retaining full-depth performance, showing the true flexibility of Looped LMs. Furthermore, training looped LMs with awareness about this KV caching strategy improves performance and efficiency. Finally, we apply a small but effective fix to the early-exit prior enforcement objective that makes tokens exit at truly heterogeneous depths based on effort. Our findings are validated on Ouro models as well as smaller looped LMs pre-trained from scratch.

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