150M Recurrent Model Scores 29.5% on ARC-AGI at $0.0007 per Task

juanviera23 · reddit · 2026-08-15

A paper from the Pathway team presents a 150M parameter recurrent model achieving 29.5% on ARC-AGI-1 at a cost of $0.0007 per task. Unlike Transformers, it uses a recurrent latent reasoning setup that "thinks" in latent space before answering. This result sits completely outside the published cost/accuracy frontier for ARC-AGI, and the model's small size allows it to run on virtually any hardware. The author is eager to see it scaled up to 1-3B parameters.

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