back
Get SIGNAL/NOISE in your inbox daily

The advent of reasoning AI models like OpenAI’s o1 has sparked new discussions about effective prompting techniques and their associated costs.

The evolution of reasoning AI: OpenAI’s o1 model, launched in September 2024, represents a new generation of AI that prioritizes thorough analysis over speed, particularly excelling in complex math and science problems.

  • The model employs “chain-of-thought” (CoT) prompting and self-reflection mechanisms to verify its work
  • Competitors including DeepSeek’s R1, Google Gemini 2 Flash Thinking, and LlamaV-o1 have emerged with similar reasoning capabilities
  • These models intentionally slow down their response time to enable more thorough analysis and verification

Cost considerations: The significant price differential between o1 and traditional language models has raised questions about their value proposition.

  • O1 costs $15.00 per million input tokens, compared to GPT-4o‘s $1.25 per million tokens
  • The 12x price increase has led to scrutiny of the model’s performance benefits
  • Despite the higher costs, a growing number of users are finding value in the enhanced capabilities

New prompting paradigm: Former Apple Interface Designer Ben Hylak has introduced a novel approach to prompting reasoning AI models.

  • Instead of traditional prompts, Hylak advocates for writing detailed “briefs” that provide comprehensive context
  • Users should focus on explaining what they want rather than how the model should think
  • The approach allows the model to leverage its autonomous reasoning capabilities more effectively

Expert validation: Key industry figures have endorsed these new prompting methods.

  • OpenAI president Greg Brockman confirmed that o1 requires different usage patterns compared to standard chat models
  • Louis Arge, former Teton.ai engineer, has discovered that LLMs respond better to self-generated prompts
  • These insights suggest that traditional prompting techniques may need to evolve for newer AI models

Looking ahead: The emergence of reasoning AI models signals a shift in how users should interact with artificial intelligence systems, requiring adaptation in prompting strategies while potentially delivering superior results for complex tasks. The success of these models may ultimately depend on users’ ability to effectively communicate their needs through more detailed and context-rich prompting approaches.

Recent Stories

Oct 17, 2025

DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment

The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...

Oct 17, 2025

Tying it all together: Credo’s purple cables power the $4B AI data center boom

Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...

Oct 17, 2025

Vatican launches Latin American AI network for human development

The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...