Auto-regressive speech-text models pre-trained on interleaved text tokens and discretized speech tokens demonstrate strong speech understanding and generation, yet remain substantially less compute-efficient than text LLMs, partly due to the much longer sequences of speech tokens relative to text. This modality imbalance disproportionately allocates pre-training and inference compute to speech, potentially hindering effective cross-modal alignment and slowing performance scaling by orders of magnitude. We introduce the Latent Speech-Text Transformer (LST), which aggregates speech tokens into latent speech patches that serve as higher-level autoregressive units. This design aligns the sequence-modeling granularity between speech and text while improving computational efficiency. The resulting patches can align with textual units to facilitate cross-modal knowledge transfer and compactly capture recurring acoustic patterns such as silence. Across story-completion benchmarks under both compute-controlled and data-controlled settings, LST consistently improves speech accuracy while also improving text performance, achieving up to +6.5% absolute gain on speech HellaSwag in compute-controlled training (+5.3% in data-controlled training). Under compute-controlled scaling from 420M to 1.8B parameters in a near compute-optimal regime, gains grow with scale, and improvements persist up to 7B parameters under fixed-token budgets. These benefits extend to downstream tasks: LST stabilizes ASR adaptation and reduces the effective autoregressive sequence length during ASR and TTS inference, lowering computational cost without degrading reconstruction quality. The code is available at https://github.com/facebookresearch/lst.