

Reasoning Models: When AI Learned to Think Before Answering
OpenAI's o1 didn't just answer questions: it paused to think. Spending compute at inference time rather than only at training time changed what "capable" meant for AI.
In September 2024, OpenAI released o1 (previewed internally as "Strawberry"), a model that spent compute at inference time rather than producing an immediate answer. Before responding, o1 generated an extended internal chain of reasoning steps, explored alternative approaches, caught and corrected errors in its own logic, and then produced a final answer. The idea of prompting LLMs to "show their work" before answering had been demonstrated in 2022 to substantially improve performance on reasoning tasks. What o1 did differently was make the reasoning internal, variable in length, and learned through reinforcement learning rather than prompted by the user.
The benchmark results were striking. o1 achieved 83% on the 2024 USA Math Olympiad qualifying exam, compared to GPT-4o's 13%. On PhD-level science questions (GPQA Diamond), o1 scored 78% against GPT-4o's 53%. On ARC-AGI, the benchmark designed to resist memorisation, o3 (the December 2024 successor) scored 87.5% in high-compute mode on a task where GPT-4 had achieved near zero. The gap between a model that answered immediately and one permitted to reason for extended periods was measurable, large, and consistent across domains.
The paradigm shift was in where intelligence was located. Pre-o1 AI applied fixed compute per token: more capable models were trained longer on more data, not run longer on each query. o1 demonstrated that variable inference compute, spending more on harder problems at runtime, could substitute for or amplify pre-training scale. A model might not know the answer but could compute its way to it. This created a new design dimension: for simple queries, use a fast cheap model; for hard problems, give a reasoning model more time and budget.
Extended thinking traces, the long chains of reasoning tokens generated before the answer, revealed qualitatively new behaviour. The model appeared to second-guess itself, backtrack from wrong paths, try alternative approaches, and self-correct. This was not simulated deliberation performed for the user's benefit; it was the mechanism through which o1 achieved its scores. It also introduced new failure modes: very long reasoning chains could arrive at wrong answers with high apparent confidence, and the internal reasoning was not always visible or auditable, making failures harder to diagnose.
By early 2025, reasoning models had become a distinct product category. Anthropic's Claude 3.7 Sonnet (February 2025) introduced an extended thinking mode. Google's Gemini 2.0 Flash Thinking launched in January 2025. DeepSeek R1 (January 2025) developed reasoning emergently through reinforcement learning without supervised chain-of-thought data. The question of how to evaluate, trust, and deploy systems whose thinking is extended and partly opaque became the central challenge of the reasoning model era, and remains the frontier of production AI engineering.
What it actually meant
Reasoning models introduced variable inference compute: the model can spend more compute on harder problems at runtime rather than only at training time. This decouples capability from model size in a new direction: a smaller model that reasons for longer can outperform a larger model that answers immediately. The implication is that "intelligence" in AI is not a fixed property of a trained model but a function of how much compute the model is allowed to spend on a problem.
What enterprises get wrong today
Teams deploy reasoning models for all tasks because they score higher on benchmarks. Reasoning at inference time is expensive: extended thinking costs tokens, and tokens cost money. A model that thinks for thirty seconds before answering a simple retrieval question is not smarter; it is wasteful. Routing queries to the cheapest model that can answer them correctly is the engineering challenge, not defaulting to the most capable.
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o1 didn't just make AI more capable: it introduced a new paradigm where spending more compute at inference time (thinking longer) could substitute for pre-training scale. What would you like to explore: how the reasoning works, the benchmark results, or what it means for AI system design?