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Recursion Is The Next Scaling Law In AI

May 1, 2026· 38 min· 20K views·Watch on YouTube

Speakers

François Chollet, visiting partner at Y Combinator, discusses recursive reasoning in AI with the Decoded host, Wa C.

Why feedforward models struggle with some reasoning

Chollet contrasts recurrent models, which update a hidden state repeatedly, with transformers that process input in parallel during training. He argues that fixed-depth models can run out of steps on tasks such as sorting, where comparisons require iterative computation. Chain of thought and tool use can help, but their effectiveness depends on training data or known algorithms.

How HRM uses recursive refinement

The hierarchical reasoning model (HRM) repeatedly applies shared weights through low-level, high-level, and outer refinement loops. The speakers describe a 27-million-parameter model trained from scratch on roughly a thousand ARC tasks, reporting about 70% on ARC Prize 1 at the time. Its training uses stop-gradient and fixed-point-style updates rather than backpropagating through every recursive step; the speakers say the outer refinement loop was especially important.

What TRM simplifies and improves

The tiny recursive model (TRM) keeps the outer refinement approach while sharing weights in a single network and using a smaller architecture. It backpropagates through one full recursive step, while still truncating the longer recursion. The speakers report a 7-million-parameter model reaching 87% on ARC-1, compared with HRM’s reported 70%, and discuss task-specific results such as Sudoku and mazes.

Where recursion could fit in AI

Chollet argues that recursion and outer refinement are promising, though the mechanism behind their effectiveness remains unclear. The models discussed are task-specific, while large language models offer broader learned representations. The speakers suggest combining those representations with recursive reasoning in latent space to tackle more complex tasks.

Takeaways

  • For tasks requiring many sequential operations, consider adding iterative computation instead of only increasing model size.
  • Treat hidden-state updates as working memory that can accumulate intermediate information during reasoning.
  • Test whether outer refinement improves your task; the speakers describe it as a key contributor in HRM and TRM.
  • Compare model size and compute depth separately: a smaller model with recursion may outperform a larger fixed-depth model on a specific task.
  • Keep task scope in mind: the reported recursive models were specialized, and their results do not establish general-purpose performance.

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