Vision-language-action policies rely on large multimodal backbones to jointly perform perception, language conditioning, and action generation at every control step. Much of this capacity supports open-domain semantics, whereas continuous robot manipulation primarily requires compact representations of observations, actions, and the transitions induced by actions. Pixel-level world models provide another route, but predicting visual details irrelevant to control can be unnecessarily expensive. We propose SLIM (Self-supervised Latent Interaction Model), a compact 0.5B-parameter latent interaction policy. SLIM learns action-grounded predictive latents that capture both action-conditioned future transitions and the actions that explain observed changes. SLIM learns these representations through self-supervised masked trajectory prediction, combining action reconstruction with future-latent prediction. A compact Mixture-of-Transformers (MoT) backbone models interactions between observation latents and action tokens. The resulting policy is trained with flow matching for language-conditioned action generation. Across simulation benchmarks and real-world evaluation, SLIM matches or exceeds representative large-scale VLA and world-action-model baselines with fewer parameters, no additional embodied pretraining, lower inference latency, and substantially lower GPU memory usage.

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