OMG OpenAI's o1 is a LogicQuake! The AI Reasoning Layer, Sequoia Capital

OVERFIT: AI, Machine Learning, and Deep Learning Made Simple

The source, "Generative AI's Act o1: The Reasoning Era Begins | Sequoia Capital," discusses the evolution of AI models from simply mimicking patterns to engaging in more deliberate reasoning. The authors argue that the next frontier in AI is the development of "System 2" thinking, where models can reason through complex problems and make decisions based on logic rather than simply relying on pre-trained data. The article highlights OpenAI's o1 model as an example of this evolution, as it incorporates inference-time compute, allowing the model to "stop and think" before responding. The authors then explore the implications of this shift for AI applications, arguing that a new generation of "agentic applications" is emerging that can perform tasks previously done by humans, such as customer support or legal analysis. The article concludes by examining the investment opportunities presented by this new era of AI, suggesting that the most promising areas for venture capital are in the development of cognitive architectures and "agentic applications" that can address the complexities of the real world.

Read the article here: https://www.sequoiacap.com/article/generative-ais-act-o1/