Discovering Multiple Frontiers in AI: An In-depth Analysis of Reasoning Models, Cost, and Speed

Welcome to my talk about AI frontiers, where we'll explore the trade-offs between intelligence, cost, and speed in the rapidly evolving landscape of artificial intelligence.

  • 1. George is a co-founder of Artificial Analysis, an independent AI benchmarking company.
  • 2. Artificial Analysis benchmarks a broad spectrum across AI, including models for intelligence, API endpoints for speed and cost, hardware accelerators, and various modalities such as language, visio
  • 3. The company publishes benchmarks for over 150 different models across various metrics on their website, artificialanalysis.ai, along with reports (many publicly accessible) and enterprise subscript
  • 4. George discusses the progress in AI, highlighting OpenAI's role in kickstarting advancements with chatGPT and GBD 3.5 releases.
  • 5. The frontier AI intelligence landscape includes models like O3, 04 mini with reasoning mode high, Deepseek R1, Rock 3 mini reasoning high, Gemini 2.5 Pro, Claude 4 opus thinking, with benchmarks ba
  • 6. George emphasizes that there is more than one frontier in AI and explores reasoning models, open weights frontier, cost frontier, and speed frontier.
  • 7. Reasoning models offer greater intelligence but require more output tokens, which can lead to trade-offs in request latency and cost.
  • 8. Artificial Analysis found an order of magnitude difference in output tokens between reasoning and non-reasoning models (e.g., GPT 4.1 requiring 7M tokens vs. Gemini 2.5 Pro's 130M tokens).
  • 9. Reasoning models also exhibit longer latency; for example, GBD 4.1 took a median of 4.7 seconds compared to 04 mini high's 40+ seconds.
  • 10. Longer latency has implications for applications and users requiring responsiveness, such as enterprise chatbots or agent-based systems with multiple queries in succession.
  • 11. Around the time of GPT4 release, there was a significant gap between open weights intelligence and proprietary models; however, recent releases like Mixture Late Time 7 and LM45B have narrowed tha
  • 12. China-based AI labs contribute significantly to leading open weights models in reasoning and non-reasoning categories (e.g., DeepSeek's R1 and Alibaba's Quen 3 series).
  • 13. The cost frontier is crucial, as it impacts application building; for example, 03 cost Artificial Analysis $2,000 to run their intelligence index, while 4.1 nano was over 500 times cheaper.
  • 14. Users pay not only for the cost per token but also for verbose reasoning tokens during inference time, which can significantly increase costs.
  • 15. The cost of accessing GPT4-level intelligence has decreased by over 100x since mid-2023 across all quality bands.
  • 16. The speed frontier (output tokens per second) has increased dramatically since early 2023, with more intelligent models becoming available at faster speeds.
  • 17. Hardware improvements like H100's faster processing than A100 and specialized accelerators have contributed to increased system output throughput on chips.
  • 18. Artificial Analysis believes that demand for compute will continue to increase due to larger models, reasoning models requiring more compute, and agent-based systems with multiple sequential reque
  • 19. The company's house view suggests that compute demands will grow as a result of insatiable intelligence demands, increasingly complex reasoning models, and agents requiring more sequential request
  • 20. Artificial Analysis encourages developers to consider what if cost wasn't a barrier when building applications, as cost structures may change over time.

Source: AI Engineer via YouTube

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