arXiv:2604.02324v1 Announce Type: cross Abstract: Language models (LMs) are increasingly extended with new learnable vocabulary tokens for domain-specific tasks, such as Semantic-ID tokens in generative recommendation. The standard practice initializes these new tokens as the mean of existing vocabulary embeddings, then relies on supervised fine-tuning to learn their representations. We present a systematic analysis of this strategy: through spectral and geometric diagnostics, we show that mean initialization collapses all new tokens into a degenerate subspace, erasing inter-token distinctions that subsequent fine-tuning struggles to fully recover. These findings suggest that \emph{token initialization} is a key bottleneck when extending LMs with new vocabularies. Motivated by this diagnosis, we propose the \emph{Grounded Token Initialization Hypothesis}: linguistically grounding novel tokens in the pretrained embedding space before fine-tuning better enables the model to leverage its general-purpose knowledge for novel-token domains. We operationalize this hypothesis as GTI (Grounded Token Initialization), a lightweight grounding stage that, prior to fine-tuning, maps new tokens to distinct, semantically meaningful locations in the pretrained embedding space using only paired linguistic supervision. Despite its simplicity, GTI outperforms both mean initialization and existing auxiliary-task adaptation methods in the majority of evaluation settings across multiple generative recommendation benchmarks, including industry-scale and public datasets. Further analyses show that grounded embeddings produce richer inter-token structure that persists through fine-tuning, corroborating the hypothesis that initialization quality is a key bottleneck in vocabulary extension.

arXiv:2603.08652v1 Announce Type: new Abstract: Recent advancements in Unified Multimodal Models (UMMs) have significantly advanced text-to-image (T2I) generation, particularly through the integration of Chain-of-Thought (CoT) reasoning. However, existing CoT-based T2I methods largely rely on abstract natural-language planning, which lacks the precision required for complex spatial layouts, structured visual elements, and dense textual content. In this work, we propose CoCo (Code-as-CoT), a code-driven reasoning framework that represents the reasoning process as executable code, enabling explicit and verifiable intermediate planning for image generation. Given a text prompt, CoCo first generates executable code that specifies the structural layout of the scene, which is then executed in a sandboxed environment to render a deterministic draft image. The model subsequently refines this draft through fine-grained image editing to produce the final high-fidelity result. To support this training paradigm, we construct CoCo-10K, a curated dataset containing structured draft-final image pairs designed to teach both structured draft construction and corrective visual refinement. Empirical evaluations on StructT2IBench, OneIG-Bench, and LongText-Bench show that CoCo achieves improvements of +68.83%, +54.8%, and +41.23% over direct generation, while also outperforming other generation methods empowered by CoT. These results demonstrate that executable code is an effective and reliable reasoning paradigm for precise, controllable, and structured text-to-image generation. The code is available at: https://github.com/micky-li-hd/CoCo

arXiv:2602.10604v2 Announce Type: replace-cross Abstract: 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.