System 1 vs System 2 Thinking
Learn the difference between "Fast Chat" and "Deep Reasoning" (like o1).
Standard Model
- ✅ Fast Latency
- ✅ Lower Cost
- ❌ Prone to Logic Errors
Selected
Reasoning Model (o1)
- ✅ Deep Intelligence
- ✅ Self-Correction
- ❌ Higher Latency & Cost
The Logic Test
"If I have 3 oranges and you give me 2 apples, then I eat 1 orange and give you 1 apple, how many fruits do I have left?"
What is Inference-Time Compute?
Reasoning models like OpenAI o1 use "Chain of Thought" internally. They are trained to evaluate multiple paths and correct their own mistakes before producing a final answer. This is different from standard models that predict the very next token immediately.
The "System 2" Opportunity
Don't use Reasoning models for everything. They are 10-100x more expensive and have high latency. Use them for strategy, complex coding, and RAG verification—but stick to standard models for simple chat and summary.