GR2 Technical Report
Abstract
Industrial recommendation systems serve billions of users through a multi-stage funnel -- retrieval, early-stage ranking, and re-ranking -- where the final re-ranking step disproportionately shapes user engagement and downstream performance, particularly for carousel and grid display formats. Despite growing enthusiasm for Large Language Models (LLMs) in recommendation, three gaps hinder industrial adoption: (1) most efforts target retrieval and ranking, leaving re-ranking -- the stage closest to the final user experience -- largely underexplored; (2) LLMs are typically deployed zero-shot or via supervised fine-tuning, underutilizing the reasoning capabilities unlocked by reinforcement learning (RL) on verifiable rewards; (3) deployed catalogs index billions of items with non-semantic identifiers that lie outside any base-LLM vocabulary. We present GR2 (Generative Reasoning Re-Ranker), an end-to-end framework that combines (i) mid-training on semantic IDs produced by a tokenizer with >=99% uniqueness, (ii) reasoning-trace distilled from a stronger teacher via targeted prompting and rejection sampling, and (iii) RL with verifiable rewards purpose-built for re-ranking. To make GR2 resource-viable, we further (iv) introduce a context compressor that amortizes training cost, On-Policy Distillation (OPD) as a scalable alternative to SFT -- which we find collapses at industrial scale -- and reasoning distillation for low-latency serving. GR2 delivers +18.7% R@1, +7.1% R@3, and +9.6% N@3 over legacy baselines on industrial-scale traffic. We further find that reward design is critical in re-ranking: LLMs often hack rewards by preserving the incoming order or exploiting position bias, motivating conditional verifiable rewards as essential industrial components.
Cite
@article{arxiv.2606.31984,
title = {GR2 Technical Report},
author = {Yufei Li and Zaiwei Zhang and Mingfu Liang and Kavosh Asadi and Jay Xu and Jimmy Kim and Chongyang Bai and Jieyi Zhang and Hongye Xie and Prachi Agrawal and Dian Yu and Tianyi Chen and Jean-Pascal Billaud and Garret Buell and YK and Zhu and Sachin Patil and Brooke Bian and Zhou Fang and Kevin Huang and Shiva Sudanagunta and Yuzhen Huang and Emma Lu and Chris O'Brien and Yang Song and Lihong Li and Jacob Tao and Zhicheng Zhu and Chao Li and Gaoxiang Liu and Neil Wu and Zhongyin Hu and Li Han and Loki Chen and Ming Lei and Greg Rehm and Siyuan Song and Tianwei Zhang and Li Li and Ketan Singh and Yavuz Yetim and Ilyas Atishev and Satendra Gera and Ashkan Sadeghi and Rachel Yan and Nikko Mizutani and Shuaiwen Wang and Song Yang and Zhijing Li and Jiang Liu and Mengying Sun and Fei Tian and Xiaohan Wei and Chonglin Sun and Parish Aggarwal and Kaushik Rangadurai and Zhi Hua and Frank Shyu and Ruchit Sharma and Liyuan Li and Shike Mei and Wenlin Chen and Santanu Kolay and Ben Schulte and Deepak Chandra and Adam and Song and Sandeep Pandey and Xi Liu and Hamed Firooz and Luke Simon},
journal= {arXiv preprint arXiv:2606.31984},
year = {2026}
}
Comments
18 pages, 10 figures