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Learning path3 terms · ~9 min read

The Reasoning Era

Why the second half of 2025 changed pricing forever.

Start · Chain of Thought
ConceptsChapter 1 of 3

The prompting trick that became a training technique.

TL;DR

Prompting the model to show its reasoning steps before the final answer · dramatically improves math, logic, and multi-step tasks.

CoT was a hack in 2022 and a core capability by 2025. The next bench will measure CoT efficiency, not CoT presence.

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ConceptsChapter 2 of 3

How o1, o3, R1, and Claude Extended Thinking work.

TL;DR

A model that generates internal reasoning tokens before producing the answer, trading inference cost for accuracy on math and logic.

Reasoning models changed the pricing ladder: the frontier is no longer one price. It is now $2/M for chat, $20/M for reasoning, and $200/M for agent execution.

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BenchmarksChapter 3 of 3

The benchmark that broke most of them.

TL;DR

ARC-AGI is a reasoning benchmark tracked by BenchGecko across every frontier and open-weight model.

ARC-AGI rewards models that spend test-time compute · reasoning tier premium priced in.

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What you learned

By the end you understand why o1, Claude Extended Thinking, and DeepSeek R1 reshaped the frontier · and why the reasoning tier costs 30× more than chat.

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The AI Bubble Explained

Seven terms that decode whether AI is overpriced, fairly priced, or criminally underpriced. Read in order.