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Beyond the Token: Latent-Space Reasoning and Neural Bytecode for Sustainable AI Scaling

Comprehensive analysis of the 2025 energy crisis and presentation of the Power-Survival Stack architecture.

Publication Status:

Preprint. Work is under peer review.

400×

Efficiency Gain

LSR

Latent Reasoning

Dec 2025

Preprint Date

Key Metrics

Total Efficiency

400×

EU Grid Deficit

-920 TWh (2025)

Compression

10× (Bytecode)

Architecture

MoE + Latent

Key Concepts

Grid Crisis

2025 grid audit reveals zero surplus capacity for AI expansion in major markets

MoE Baseline

Mixture-of-Experts with FP8 delivers 9× efficiency as the new standard

Latent Reasoning

LSR enables "quiet contemplation"—thinking without decoding tokens

Neural Bytecode

Dense AI-native representation with 10× compression over Python

Brief Overview

This paper addresses a critical bottleneck in modern AI scaling: the "Token Tax". Modern large language models (LLMs) waste vast amounts of energy decoding intermediate "chain-of-thought" tokens that serve merely as a draft for thinking.

Key Innovation: We introduce Latent-Space Reasoning (LSR), a paradigm that decouples reasoning from token generation. By performing multi-hop logical inferences within a high-dimensional hidden state vector, we eliminate the memory bandwidth costs of autoregressive decoding.

Results: Combined with the "Rational Scaling" base (MoE + FP8) and Neural Bytecode for output compression, the Power-Survival Stack achieves a 400-fold reduction in total system energy costs. This enables the deployment of reasoning-capable agents even amidst the energy crisis of 2025.

400×

ENERGY EFFICIENCY

Figure 1: Comparative efficiency of Legacy CoT vs. Power-Survival Stack