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Generative AI's Act o1: The Reasoning Era Begins | Sequoia Capital

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Two years into the Generative AI revolution, research is progressing the field from “thinking fast”—rapid-fire pre-trained responses—to “thinking slow”— reasoning at inference time. This evolution is unlocking a new cohort of agentic applications. On the second anniversary of our essay “Generative AI: A Creative New World,” the AI ecosystem looks very different, and we have some predictions for what’s on the horizon. The foundation layer of the Generative AI market is stabilizing in an equilibrium with a key set of scaled players and alliances, including Microsoft/OpenAI, AWS/Anthropic, Meta and Google/DeepMind. Only scaled players with economic engines and access to vast sums of capital remain in play. While the fight is far from over (and keeps escalating in a game-theoretic fashion), the market structure itself is solidifying, and it’s clear that we will have increasingly cheap and plentiful next-token predictions. As the LLM market structure stabilizes, the next frontier is now eme

Generative AI’s Act o1 By Sonya Huang , Pat Grady and o1 Published October 9, 2024 The Agentic Reasoning Era Begins Two years into the Generative AI revolution, research is progressing the field from “thinking fast”—rapid-fire pre-trained responses—to “thinking slow”— reasoning at inference time. This evolution is unlocking a new cohort of agentic applications. On the second anniversary of our essay “ Generative AI: A Creative New World ,” the AI ecosystem looks very different, and we have some predictions for what’s on the horizon. The foundation layer of the Generative AI market is stabilizi

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