OpenAI Releases o1-preview model

In a significant power move, OpenAI unleashed its o1-preview model on September 12, 2024, touting it as an AI powerhouse capable of complex reasoning. The model is now available for a test drive in ChatGPT and via API.

OpenAI’s o1-preview

The o1-preview series is engineered to mimic human problem-solving by taking more time to ponder before spitting out responses. This training regimen allows the model to fine-tune its thought process, experiment with various strategies, and identify pitfalls. The result? A reasoning beast that crushes complex tasks.

Performance

Internal stress tests reveal that the next-gen model goes toe-to-toe with Ph.D. candidates in hardcore subjects like physics, chemistry, and biology. But that’s not all – it’s also flexing serious muscle in math and coding. Case in point: while GPT-4o only cracked 13% of problems in the International Mathematical Olympiad (IMO) qualifying round, the reasoning model nailed 83%. In the Codeforces arena, its coding chops hit the 89th percentile. These numbers scream massive gains in complex reasoning tasks.

OpenAI’s o1-mini

For devs looking for a leaner, meaner solution, OpenAI rolled out o1-mini. This speedier, budget-friendly reasoning model is a coding wizard. As a trimmed-down version, the o1-mini comes with an 80% discount compared to the o1-preview, making it a powerhouse for apps that need reasoning without the complete encyclopedia of world knowledge.

Market Insights

The LLM space is a pressure cooker, with today’s top dog potentially becoming tomorrow’s underdog. The trend of more bang for your buck, driven by cutthroat competition and aggressive price slashing, suggests the market might evolve into a search engine-like oligopoly. Big tech could dominate the mainstream while niche players carve out specialized niches.

Different models shine in different arenas:

• For data mining: Grok and Perplexity, with Grok tapping into the X.com (Twitter) goldmine.
• For data visualization and table creation: GPT
• For translation tasks: Claude

The AI hype train might be nearing its “law of diminishing returns” station. The initial shock and awe may wear off after a few months, leading to user fatigue. This mirrors the iPhone phenomenon: objectively more potent with each iteration, but the wow factor diminishes as tech outpaces average user needs. However, for the pros, AI’s evolution and application potential remain bullish.