/AI22d ago

Microsoft AI Frontiers researchers develop ECHO, a training method that adds environment prediction loss to GRPO so CLI agents build internal world models of terminal environments during reinforcement learning

AI Judge changed title after evaluation, original title: "Dimitris Papailiopoulos, Principal Researcher at Microsoft Research AI Frontiers, posts details on ECHO, a method that adds environment prediction loss to GRPO training for command-line agents."

Qwen3 evaluations show higher pass rates with no added compute.

2474.4K4113.8K797.8K
Original post
Dimitris Papailiopoulos@DimitrisPapail#193inAI

http://x.com/i/article/2056344151235387392

6:38 AM · May 18, 2026 · 325.3K Views
Sentiment

Users praised the ECHO method for training CLI agents because the single loss term enables world modeling, faster RL, and reward-free learning in open-weights models.

Pos
100.0%
Neg
0.0%
38 comments with sentiment.
Cluster Engagement
Posts from X
Most Activity
Most Activity
VIEWS82.6KBOOKMARKS887LIKES780REPLIES14
will brown@willccbb

god what a beautiful objective. i wonder how general you can push this. best non-distillation answer ive seen for knowledge acq during RL, feels bitter-pilled in a way that most self-teaching methods aren’t.

http://x.com/i/article/2056344151235387392

22dViews 82.6KLikes 780Bookmarks 887

Very rarely you stumble on a method that's simple, obvious in hindsight, free, and touches on every problem you care about: CLI agents, continual learning, self-improvement, world models.

ECHO is one of those

http://x.com/i/article/2056344151235387392

22dViews 68.7KLikes 518Bookmarks 539

World modeling. Faster RL. Self-improvement without verifiers.

All from one extra loss term on your favorite open-weights CLI agent.

Happy Monday!

http://x.com/i/article/2056344151235387392

22dViews 30.9KLikes 219Bookmarks 196

Lol you can continual learn by training on terminal outputs WITHOUT REWARDS

http://x.com/i/article/2056344151235387392

22dViews 32.7KLikes 239Bookmarks 176
Yu Su@ysu_nlp

nice work by @DimitrisPapail and @VaishShrivas!

this work is reinforcing a recent trend that tries to make foundation models jointly predict future states (aka 'world models') and actions instead of actions alone.

we're seeing it in different forms, like World Action Models in embodied agents, or implicit world modeling in Early Experience (https://arxiv.org/abs/2510.08558). also some interesting link to on-policy self-distillation.

shared learning here is, there's still rich supervision signals that are underexplored. such signals were hard to exploit in classic ML, but foundation models have made it possible, potentially creating a recursive self-improvement loop.

http://x.com/i/article/2056344151235387392

22dViews 20.4KLikes 163Bookmarks 153
Guohao Li 🐫@guohao_li

very inspiring work by @DimitrisPapail and @VaishShrivas on adding terminal response prediction as an auxiliary loss to grpo for training terminal agents

this reminds me of an old line of work on unsupervised auxiliary tasks or pseudo rewards for tackling challenges in sparse reward settings and exploration. one of the most memorable papers - unreal from 10 years ago (https://arxiv.org/pdf/1611.05397) by @maxjaderberg, @VladMnih, @wojczarnecki, tom schaul, @jzl86, david silver, and @koraykv proposed multiple auxiliary tasks like maximizing pixel changes, network feature control, reward prediction, and experience replay for training a3c agents in first-person 3d game environments

that is to say there are still many good low-hanging fruits in designing good auxiliary tasks and pseudo rewards for training llm agents in different environments. for example, auxiliary tasks like artifact control, novel state discovery, and so on may be interesting to try out

BUT be careful of reward hacking such as the well-known gaussian noise television problem

http://x.com/i/article/2056344151235387392

22dViews 9.8KLikes 88Bookmarks 54

Just realized ECHO fits a years long obsession of transformers and computers.

"Looped Transformers are Computers" "Can You Train a Transformer to be Computer?" And now "Can You Train a Transformer to Simulate a Computer?"

Blame my hobbyist love of theory of computation

http://x.com/i/article/2056344151235387392

20dViews 6.5KLikes 96Bookmarks 28

Prediction: by end of 2026 Echo will be part of standard agent RL trainers.

FREE LUNCH FOR EVERYONE

http://x.com/i/article/2056344151235387392

22dViews 7.3KLikes 62Bookmarks 33

Turns out training your agent to be a world simulator improves its accuracy of solving problems

Internalizing world modeling as a native ability for agents.

22dViews 12.3KLikes 77Bookmarks 31
davinci@leothecurious

they added a world modeling loss term to a CLI policy model and it just got better! this has been an increasingly popular trend in robotic policy training over the past year (e.g. cosmos-policy, dreamzero) and i love that it's catching on in the LLM area now. every feedback from the world holds bits of info worth learning, it's a shame most have only cared about the extremely sparse reward feedback and dismiss the rest.

http://x.com/i/article/2056344151235387392

22dViews 5.1KLikes 60Bookmarks 29
Super Dario@inductionheads

Wonderful. The terminal is the world to an agent. It learns to model the world

Very rarely you stumble on a method that's simple, obvious in hindsight, free, and touches on every problem you care about: CLI agents, continual learning, self-improvement, world models.

ECHO is one of those

22dViews 9.8KLikes 35Bookmarks 31
Alex Dimakis@AlexGDimakis

Improve your agents with one weird trick: ECHO says, when you SFT an agent, do not train it to predict only the agent replies, but also the terminal responses. When you GRPO, you use the same rollout to predict the terminal responses with cross entropy loss. Its basically free and gets extra supervision from the CLI. This apparently helps the model develop a 'world model' of the terminal, and improves performance, which was very surprising to me.

http://x.com/i/article/2056344151235387392

22dViews 6KLikes 42Bookmarks 20

One aspect that also appreciate about ECHO is that it can reduce reliance on SFT data to jump start a CLI agent.

An example: comparing with the OpenThoughts-Agent which is Qwen3-8B SFT’d on ∼15k GLM-4.6 trajectories, ECHO on base Qwen and NO SFT closes the gap.

Kinda cool!

http://x.com/i/article/2056344151235387392

21dViews 5.7KLikes 62Bookmarks 12
will brown@willccbb

a litmus test i’ve been thinking about for continual learning is bounding lifetime retrieval count per fact. a model should use tools to look things up, but gradually compound fuzzy memories of things they’ve searched, and eventually not need search. this could maybe work here

will brown@willccbb

god what a beautiful objective. i wonder how general you can push this. best non-distillation answer ive seen for knowledge acq during RL, feels bitter-pilled in a way that most self-teaching methods aren’t.

22dViews 3.1KLikes 61Bookmarks 9

How do machines build a mental map of reality? 🧠

Check out this frontier investigation into *world models* from our team at @ms_aifrontiers. Proud to see @DimitrisPapail and colleagues pushing the boundaries of how we think about AI reasoning.

World modeling. Faster RL. Self-improvement without verifiers.

All from one extra loss term on your favorite open-weights CLI agent.

Happy Monday!

22dViews 3.9KLikes 32Bookmarks 11
ueaj@_ueaj

I'd bet stuff like this is most of the OS-closed gap, attention to detail based on well reasoned / high taste conceptual theories to catch all these various subtle flaws. The tail end of the distribution is where all the value is.

There's so many little things like this. Most of the ones I can think of are in pretraining bc I'm still learning RL but they're all just like this in spirit

Very clever

http://x.com/i/article/2056344151235387392

22dViews 4.7KLikes 28Bookmarks 11
Super Dario@inductionheads

FYI, I will bet my last nickel this is part of Amthropics secret sauce

Super Dario@inductionheads

Wonderful. The terminal is the world to an agent. It learns to model the world

22dViews 4.5KLikes 29Bookmarks 11
Load more posts