New AI Reasoning System Shocks Researchers: Unlimited Context Window

AI just gained a completely new way to reason. Instead of forcing massive inputs into a context window and hoping performance holds up, researchers introduced a system where the model moves through information step by step, selectively accessing what it needs and outsourcing parts of its own thinking to an external workspace. This approach tackles context rot directly, explains why long inputs quietly break even top models, and shows how AI can work across millions of tokens at lower cost through a structural shift in how reasoning happens at inference time.

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The Paper: https://arxiv.org/pdf/2512.24601

???? What You’ll See
0:00 Intro
0:42 Why long context windows fail as inputs scale
1:11 What “context rot” really looks like in benchmarks
2:21 How Recursive Language Models treat input as an external environment
3:32 Why AI stops reading everything and starts navigating information
5:24 Real benchmark results on long-context and quadratic tasks
5:53 How REPL environments and helper models change reasoning behavior
6:20 Why some models adapt better to recursive reasoning than others
8:18 What this means for large codebases, research, and agents

???? Why It Matters
Traditional scaling is hitting limits. Bigger models cost more, perform worse on complex long-input tasks, and still miss critical details. Recursive Language Models introduce a new axis of progress, shifting reasoning from memory-bound to exploration-based. This opens the door to AI systems that handle massive information reliably without exploding cost or complexity.

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