Looped World Models

Current world models face a fundamental tension: faithful long-horizon simulation demands deep computation, but deeper models are expensive to deploy and prone to compounding errors. We resolve this by introducing Looped World Models (LoopWM), which are the first looped architectures for world modelling. Our method iteratively refines latent environment states through a parameter-shared transformer block. This yield up to 100x parameter efficiency over conventional approaches with adaptive computation that automatically scales depth to match the complexity of each prediction step. Orthogonal to scaling model size and training data, LoopWM establishes iterative latent depth as a new scaling axis for world simulation, which might significantly push the community forward.

Toward Consistent World Models with Multi-Token Prediction and Latent Semantic Enhancement

Whether Large Language Models (LLMs) develop coherent internal world models remains a core debate. While conventional Next-Token Prediction (NTP) focuses on one-step-ahead supervision, Multi-Token Prediction (MTP) has shown promise in learning more structured representations. In this work, we provide a theoretical perspective analyzing the gradient inductive bias of MTP, supported by empirical evidence, showing that MTP promotes the convergence toward internal belief states by inducing representational contractivity via gradient coupling. However, we reveal that standard MTP often suffers from structural hallucinations, where discrete token supervision encourages illegal shortcuts in latent space that violate environmental constraints. To address this, we propose a novel method Latent Semantic Enhancement MTP (LSE-MTP), which anchors predictions to ground-truth hidden state trajectories. Experiments on synthetic graphs and real-world Manhattan Taxi Ride show that LSE-MTP effectively bridges the gap between discrete tokens and continuous state representations, enhancing representation alignment, reducing structural hallucinations, and improving robustness to perturbations.