Dynamic Large Concept Models: Latent Reasoning in an Adaptive Semantic Space

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[Submitted on 31 Dec 2025 (v1), last revised 5 Jan 2026 (this version, v2)] Title:Dynamic Large Concept Models: Latent Reasoning in an Adaptive Semantic Space Authors:Xingwei Qu, Shaowen Wang, Zihao Huang, Kai Hua, Fan Yin, Rui-Jie Zhu, Jundong Zhou, Qiyang Min, Zihao Wang, Yizhi Li, Tianyu Zhang, He Xing, Zheng Zhang, Yuxuan Song, Tianyu Zheng, Zhiyuan Zeng, Chenghua Lin, Ge Zhang, Wenhao Huang View a PDF of the paper titled Dynamic Large Concept Models: Latent Reasoning in an Adaptive Semantic Space, by Xingwei Qu and 18 other authors View PDF HTML (experimental) Abstract:Large Language Models (LLMs) apply uniform computation to all tokens, despite language exhibiting highly non-uniform information density. This token-uniform regime wastes capacity on locally predictable spans while under-allocating computation to semantically critical transitions. We propose $\textbf{Dynamic Large Concept Models (DLCM)}$, a hierarchical language modeling framework that learns semantic boundaries from latent representations and shifts computation from tokens to a compressed concept space where reasoning is more efficient. DLCM discovers variable-length concepts end-to-end without relying on predefined linguistic units. Hierarchical compression fundamentally changes scaling behavior. We introduce the first $\textbf{compression-aware scaling law}$, which disentangles token-level capacity, concept-level reasoning capacity, and compression ratio, enabling principled compute allocation under fixed FLOPs. To stably train this heterogeneous architecture, we further develop a $\textbf{decoupled $\mu$P parametrization}$ that supports zero-shot hyperparameter transfer across widths and compression regimes. At a practical setting ($R=4$, corresponding to an average of four tokens per concept), DLCM reallocates roughly one-third of inference compute into a higher-capacity reasoning backbone, achieving a $\textbf{+2.69$\%$ average improvement}$ across 12 zero-shot benchmarks under matched infe...