NVIDIA released Nemotron-Labs-Dory1.0-4B-NVFP4, demonstrating an architectural shift toward latent-recurrent Transformers. Instead of scaling reasoning strictly by generating chains of thought in token space, Dory scales compute per token in latent space by repeatedly routing activations through a shared block of recurrent layers.
The model divides its layer stack into an 8-layer input block, a 20-layer shared recurrent block, and an 8-layer output block. Re-injecting intermediate outputs through the recurrent layers allows engineers to dynamically scale inference compute at runtime. You can increase reasoning depth on difficult tasks without swapping checkpoints or retraining.
Historically, recurrent Transformers suffered from ballooning KV cache requirements because each recurrent pass allocated separate state. Dory circumvents this bottleneck with single-cache last-loop KV caching, ensuring memory consumption does not grow linearly with recurrent iterations.
This design offers a compelling blueprint for running high-depth reasoning workloads under strict hardware budgets.








