OpenAI o1: How the New AI Series Can Help Your Organization

On September 12th, 2024, OpenAI revealed its latest innovation: the o1 series. This new AI model, available in two variants—o1-preview and o1-mini—aims to revolutionize complex problem-solving in fields such as: research, strategy, coding, math and science.

While o1 brings enhanced reasoning abilities, it’s designed to complement rather than replace existing models like GPT-4o. For features like memory, vision, file uploads, web browsing, and voice interaction, GPT-4o remains a powerful option.

As o1 becomes available to more users, understanding how these models work together can enhance creativity and problem-solving in your projects.

What is OpenAI?

Before diving deeper into the o1 model, let’s take a moment to revisit OpenAI itself. You’re likely already familiar with its most well-known product: ChatGPT. Since its release in 2022, ChatGPT has forever changed how people perceive and interact with AI. From casual conversations to advanced tasks like language translation and content generation, OpenAI’s models are broad in their capabilities. As a leading AI organization, OpenAI continues to develop cutting-edge models that offer even more helpful tools for everyday life.

This blog will introduce the latest breakthrough: the o1 series.

OpenAI o1: Who Is It Made For?

Let’s dive into who can benefit from OpenAI o1 the most. The series is mainly tailored for researchers, scientists, software developers, and professionals in complex problem-solving tasks. It excels in areas requiring thorough reasoning, such as advanced coding, mathematical analysis, and scientific research. The model is particularly suited for applications that demand high-level cognitive processes, including complex document comparison, multifaceted problem-solving, and complex workflow management.

Unlike the previous OpenAI models, made for high-volume, specific, and repetitive tasks, o1 is designed for broad and heavy assignments requiring a logical thinking process. OpenAI o1 is a perfect tool for complex document analysis, algorithm generation, and comprehensive brainstorming.

For developers, o1 (previously using the internal codename ‘Strawberry’ at OpenAI) offers an enhanced ability to generate codes that potentially revolutionize the software development processes. It can assist with data analysis, hypothesis generation, and complex mathematical equations in the scientific environment.

Why Was OpenAI o1 Created?

Now that we’ve identified OpenAI and its most popular model, let’s explore why the organization developed o1. The model was designed for specific use cases where a general-purpose model like GPT-4o might be too broad or resource-intensive. The primary goal is to provide enhanced reasoning capabilities.

Unlike previous models focused on quick responses, o1 takes more time to “think” before answering, allowing for deeper problem-solving. A level of problem-solving on the level of PhD students.

Rather than replacing existing models like GPT-4o, o1 serves as a complementary tool, excelling in different tasks.

OpenAI o1: Two Models

The o1 series includes two main models at its launch:

o1-preview

• Designed for extensive reasoning tasks and complex problem-solving
• Excels in advanced math, science, and coding challenges
• Capable of generating long chains of thought before producing a final answer
• Higher computational cost and longer response times

o1-mini

• Optimized for faster, more efficient processing of day-to-day operations
• 80% cheaper than o1-preview
• Performs well in STEM reasoning, especially math, and coding
• Faster response times, making it suitable for real-time applications
• Maintains high accuracy on many benchmarks, nearly matching o1-preview’s performance

Improvements Introduced by the o1 Models

o1 overcomes some challenges faced by earlier models:

• Improved performance on complex, multistep problems that require deep reasoning
• Enhanced ability to follow detailed instructions and manage complex workflows
• Better at solving even simple math problems with strong guidance and examples
• o1 breaks down large, complex problems into smaller parts, improving accuracy in multi-faceted tasks
• Chain-of-thought process to work through problems step-by-step. 
• Trained to spend more time thinking before responding, leading to more accurate and well-reasoned answers
•  Significant improvements in performance with increased train-time and test-time compute

OpenAI o1 and GPT-4o: How do they compare?

OpenAI o1 and GPT-4o are AI models created by OpenAI but designed for different purposes. GPT-4o is a general-purpose AI model used for a wide range of tasks, like answering questions, writing essays, coding, and even having conversations. It’s advanced and can understand more complex ideas, follow long conversations, and even handle images (if you’re using the multimodal version). 

OpenAI o1, on the other hand, is a newer model that might focus on specific applications or improved efficiency compared to earlier models. It could be a more specialized version, designed for certain industries or uses. However, it may not have all the same advanced features that GPT-4o offers, like multimodal capabilities or the same level of complexity in understanding. 

1. Reasoning Abilities

OpenAI o1 is specifically designed for complex reasoning tasks. It uses a “chain of thought” approach, thinking through problems step-by-step before providing an answer. This makes o1 particularly strong at:

• Solving math problems
• Coding challenges
• Scientific reasoning
• Strategy development

GPT-4o, while still very capable, does not have this built-in reasoning process.

2. Performance Comparison

OpenAI o1 significantly outperforms GPT-4o on reasoning-heavy tasks and benchmarks:

• Math: o1 scored 74% on the American Invitational Mathematics Examination (AIME), compared to GPT-4o’s 12%
• Coding: o1 model: 1807 Elo rating (93rd percentile, outperforming 93% of human competitors), GPT-4o: 808 Elo rating (11th percentile)

3. Use Cases

GPT-4o is an all-in-one powerful AI that can handle almost anything, including text, images, and complex problems. OpenAI o1 could be more focused, faster, or tailored for specific tasks, but without all the extra features that make GPT-4o so resourceful.

Availability and Pricing

At first, ChatGPT Plus and Team users could access both o1-preview and o1-mini directly within the ChatGPT interface, with usage limits of 30 and 50 weekly messages. 

Starting September 19, 2024, ChatGPT Enterprise and Edu users could also gain access to these models. Looking ahead, OpenAI plans to extend o1-mini access to all ChatGPT users, broadening the reach of this innovative technology.

For developers at API tier 5, prototyping is available at 20 RPM, with pricing at $15 per million input tokens and $60 per million output tokens for o1-preview. o1-mini offers a more economical choice at $3 per million input tokens and $12 per million output tokens. These rates are notably higher than GPT-4o, reflecting the enhanced reasoning capabilities of the o1 series. For more details regarding the pricing, navigate to OpenAI’s website.

Using OpenAI o1 in your Organization

Integrating OpenAI o1 into your organization can revolutionize how you process and analyze large datasets, thanks to its advanced reasoning capabilities. This tool can help identify market trends in financial services or deliver targeted marketing campaigns, ultimately leading to smarter, data-driven decisions. Furthermore, o1’s strength in coding provides significant advantages for IT departments, enabling faster generation of complex code, debugging, and even application development—potentially transforming productivity in software development.

However, while o1 is a powerful tool, it’s essential to evaluate whether it suits your organization’s specific needs and expectations. 

• Costs: Using o1 can be up to 10 times higher than GPT-4o. This aspect may pose challenges for smaller organizations with limited AI budgets.
• Response time: OpenAI o1 may take longer to generate responses compared to earlier versions. This slower response time should be carefully assessed, especially for time-sensitive tasks. 
• Expertise: Implementing o1 often requires a certain level of technical knowledge within your team. To assist with this, DataNorth has a team of AI experts available to provide guidance and support, ensuring that your organization is well-equipped to maximize the benefits of OpenAI o1.

In summary, the decision to integrate OpenAI o1 should be based on your organization’s AI experience, budget constraints, and the complexity of the problems you need to solve. For companies dealing with intricate data analysis, strategic decision-making, or software development, o1’s capabilities may justify the cost. For those with more straightforward AI needs, GPT-4o remains a powerful and cost-effective alternative.

How DataNorth Can Help

Are you looking to make use of the new OpenAI o1 set of models in your organization? DataNorth can help you determine whether OpenAI o1 or other AI tools are the right fit for your organization with our AI Assessment. Our team of AI experts guide you in choosing the best options based on your needs and budget.

We also offer tailored workshops and webinars led by AI experts to help your organization build technical expertise. These sessions are designed to ensure that your team is well-equipped to maximize the potential of AI tools like OpenAI o1.