OpenAI o1 EXPOSED: Tokenomics Breakdown by Elite Mathematician Terrence Tao

The video analyzes OpenAI’s O1 model, particularly its tokenomics and performance compared to GPT-4, revealing that O1 Mini does not significantly outperform its predecessors in reasoning tasks and raises questions about the advancements claimed by OpenAI. Renowned mathematician Terrence Tao critiques O1’s limitations in generating novel mathematical solutions due to its training data, while also suggesting that smaller, specialized models may become more relevant as larger models reach performance ceilings.

In the video, the host discusses the recent analysis of OpenAI’s model, referred to as O1, particularly focusing on its tokenomics and performance compared to previous models like GPT-4. The host shares their experience of being banned from ChatGPT for probing into the model’s reasoning capabilities, which led them to explore insights from other analysts, including Aiden mlau, who has provided a detailed breakdown of how large language models (LLMs) operate at scale. A key point of discussion is the cost per token and the efficiency of different models, revealing that O1 Mini does not necessarily outperform its predecessors in terms of token usage during reasoning tasks.

The analysis highlights that O1 Mini uses fewer tokens than the full O1 model, raising questions about the advancements claimed by OpenAI. The host notes that the reasoning steps in O1 Mini do not significantly extend the token count compared to GPT-4, suggesting that O1 may not represent a substantial leap in technology. The video emphasizes the importance of understanding how these models select tokens during inference, indicating that O1 operates similarly to GPT-4 under the hood, albeit with additional reasoning steps.

Terrence Tao, a renowned mathematician, provides critical commentary on the O1 model, stating that while it shows improvement over earlier models, it still falls short of achieving the capabilities of a competent graduate student. Tao’s insights suggest that O1’s performance is limited by its training data, particularly its lack of exposure to advanced mathematical concepts and theorem provers. This limitation affects the model’s ability to generate novel solutions to mathematical problems, which Tao believes could be improved with better training data.

The video also discusses the potential of open-source models in the AI landscape, as Tao suggests that smaller, specialized models may become increasingly relevant as larger models hit performance ceilings. The host reflects on the idea that innovation in AI may not solely come from large corporations but could emerge from smaller teams and individuals working with limited resources. This perspective highlights the dynamic nature of the AI field, where diverse approaches and cross-pollination of ideas can lead to significant advancements.

In conclusion, the host invites viewers to engage in the discussion about O1 and its implications for the future of AI. They encourage comments on the perceived differences between the official release and the preview of O1, as well as thoughts on the tokenomics of various models. The video underscores the importance of continued exploration and analysis in understanding the capabilities and limitations of AI models, fostering a community of inquiry around these rapidly evolving technologies.