DM0: An Embodied-Native Vision-Language-Action Model towards Physical AI

Moving beyond the traditional paradigm of adapting internet-pretrained models to physical tasks, we present DM0, an Embodied-Native Vision-Language-Action (VLA) framework designed for Physical AI. Unlike approaches that treat physical grounding as a fine-tuning afterthought, DM0 unifies embodied manipulation and navigation by learning from heterogeneous data sources from the onset. Our methodology follows a comprehensive three-stage pipeline: Pretraining, Mid-Training, and Post-Training. First, we conduct large-scale unified pretraining on the Vision-Language Model (VLM) using diverse corpora--seamlessly integrating web text, autonomous driving scenarios, and embodied interaction logs-to jointly acquire semantic knowledge and physical priors. Subsequently, we build a flow-matching action expert atop the VLM. To reconcile high-level reasoning with low-level control, DM0 employs a hybrid training strategy: for embodied data, gradients from the action expert are not backpropagated to the VLM to preserve generalized representations, while the VLM remains trainable on non-embodied data. Furthermore, we introduce an Embodied Spatial Scaffolding strategy to construct spatial Chain-of-Thought (CoT) reasoning, effectively constraining the action solution space. Experiments on the RoboChallenge benchmark demonstrate that DM0 achieves state-of-the-art performance in both Specialist and Generalist settings on Table30.

Step 3.5 Flash: Open Frontier-Level Intelligence with 11B Active Parameters

We introduce Step 3.5 Flash, a sparse Mixture-of-Experts (MoE) model that bridges frontier-level agentic intelligence and computational efficiency. We focus on what matters most when building agents: sharp reasoning and fast, reliable execution. Step 3.5 Flash pairs a 196B-parameter foundation with 11B active parameters for efficient inference. It is optimized with interleaved 3:1 sliding-window/full attention and Multi-Token Prediction (MTP-3) to reduce the latency and cost of multi-round agentic interactions. To reach frontier-level intelligence, we design a scalable reinforcement learning framework that combines verifiable signals with preference feedback, while remaining stable under large-scale off-policy training, enabling consistent self-improvement across mathematics, code, and tool use. Step 3.5 Flash demonstrates strong performance across agent, coding, and math tasks, achieving 85.4% on IMO-AnswerBench, 86.4% on LiveCodeBench-v6 (2024.08-2025.05), 88.2% on tau2-Bench, 69.0% on BrowseComp (with context management), and 51.0% on Terminal-Bench 2.0, comparable to frontier models such as GPT-5.2 xHigh and Gemini 3.0 Pro. By redefining the efficiency frontier, Step 3.5 Flash provides a high-density foundation for deploying sophisticated agents in real-world industrial environments.

STEP3-VL-10B Technical Report

We present STEP3-VL-10B, a lightweight open-source foundation model designed to redefine the trade-off between compact efficiency and frontier-level multimodal intelligence. STEP3-VL-10B is realized through two strategic shifts: first, a unified, fully unfrozen pre-training strategy on 1.2T multimodal tokens that integrates a language-aligned Perception Encoder with a Qwen3-8B decoder to establish intrinsic vision-language synergy; and second, a scaled post-training pipeline featuring over 1k iterations of reinforcement learning. Crucially, we implement Parallel Coordinated Reasoning (PaCoRe) to scale test-time compute, allocating resources to scalable perceptual reasoning that explores and synthesizes diverse visual hypotheses. Consequently, despite its compact 10B footprint, STEP3-VL-10B rivals or surpasses models 10$\times$-20$\times$ larger (e.g., GLM-4.6V-106B, Qwen3-VL-235B) and top-tier proprietary flagships like Gemini 2.5 Pro and Seed-1.5-VL. Delivering best-in-class performance, it records 92.2% on MMBench and 80.11% on MMMU, while excelling in complex reasoning with 94.43% on AIME2025 and 75.95% on MathVision. We release the full model suite to provide the community with a powerful, efficient, and reproducible baseline.

Learning Temporal Abstractions via Variational Homomorphisms in Option-Induced Abstract MDPs

Large Language Models (LLMs) have shown remarkable reasoning ability through explicit Chain-of-Thought (CoT) prompting, but generating these step-by-step textual explanations is computationally expensive and slow. To overcome this, we aim to develop a framework for efficient, implicit reasoning, where the model "thinks" in a latent space without generating explicit text for every step. We propose that these latent thoughts can be modeled as temporally-extended abstract actions, or options, within a hierarchical reinforcement learning framework. To effectively learn a diverse library of options as latent embeddings, we first introduce the Variational Markovian Option Critic (VMOC), an off-policy algorithm that uses variational inference within the HiT-MDP framework. To provide a rigorous foundation for using these options as an abstract reasoning space, we extend the theory of continuous MDP homomorphisms. This proves that learning a policy in the simplified, abstract latent space, for which VMOC is suited, preserves the optimality of the solution to the original, complex problem. Finally, we propose a cold-start procedure that leverages supervised fine-tuning (SFT) data to distill human reasoning demonstrations into this latent option space, providing a rich initialization for the model's reasoning capabilities. Extensive experiments demonstrate that our approach achieves strong performance on complex logical reasoning benchmarks and challenging locomotion tasks, validating our framework as a principled method for learning abstract skills for both language and control.