There was a narrative, at least in some circles, maybe outside of San Francisco, throughout the year, that AI progress was slowing down, that we had maxed out pre-training, that scaling laws were hitting a wall. GPT-5.1, Gemini 3. So this feels like a major violation of that narrative. What is it that people in the frontier AI labs know about AI progress that at least parts of the rest of the world seem to not understand?
I think there is a lot to unpack there, so I want to go a little slower. There is this thing that's happening in AI, and in AI every week now, a lot is happening: new models, coding, doing slides, self-driving cars, images, videos. It's a nice field that doesn't make you bored for a long time. But through all of this, it's sometimes hard to see the fundamental things that are happening. And fundamentally, if you look at AI progress, it's been a very smooth exponential increase in capabilities.
This is the overarching trend. And there has never been much to make me, at least, and I think my colleagues in the labs, believe that this trend is not happening. It's a little bit like Moore's Law, right? Moore's Law happened through decades and decades, and arguably, you would say it's still very much going on, if not speeding up with the GPUs. But of course, it did not happen as, like, one technology was bringing you there for 40 years. There was one technology, and then another and another and another and another.
And this went on for decades, right? So from the outside, you see a smooth trend, but from the inside, of course, progress is made through new developments in addition to the increase of computer power and better engineering. And so all of these things come together. And in terms of language models, I think there was a big pivotal point. One point was, of course, the Transformers when it started, but the other point was reasoning models. And that happened, I think, o1-preview was about a year and a month ago or something like that.
So we started working on it maybe three years ago, but it's very recent. If you think of it as a paradigm, that's a very recent thing. So it's always like these S-curves, right? It starts, then it gives you amazing growth, and then it flatlines a little bit. We'll get to the pre-training, right? I feel pre-training, in some sense, is on the upper part of the S. Yes, but it's not like scaling laws for pre-training don't work. They totally work.
What scaling laws say is that your loss will log-linearly decrease with your compute. We totally see that. And clearly Google sees that, and all other labs. The problem is how much money do you need to put into that versus the gains you get? And it's just a lot of money, and people are putting it. But with the new paradigm of reasoning, you can get much more gains for the same amount of money because it's on this lower part, and there are just discoveries to be made, and these discoveries unlock insane capabilities.
So it's not like pre-training fizzled out. It's just we found out a new paradigm that, at the same price, gives us much more amazing development. And this paradigm is still very new. It happened so fast. I think if you blink, you may miss it. GPT-3.5, right? GPT-3.5 in ChatGPT, and it would give you answers, and it used no tools, no reasoning. It would answer you something. And now you have ChatGPT, and if you were not into it, you may have blinked and it also gives you answers, and you may say, okay, it's more or less the same, except ChatGPT now will go look on some websites, reason about it, and give you the right answer instead of something it memorized in its weights.
I very much used to like this example of, what time does the SF Zoo open tomorrow? Like, the old ChatGPT would tell you, right? Totally hallucinate from its memory an hour that it read, probably on the zoo's website from five years ago, and it didn't know what's today or tomorrow, so it would just assume it's a weekday. ChatGPT now knows what's today because it's in the system prompt. It goes to the zoo website, reads it, extracts the information.
If it's ambiguous, it probably checks three other websites just to confirm and then gives you the answer. But if you blink, you may think it's the same, but no, it's dramatically better. And as a consequence, since it can read all the websites in the world, it can give you answers in stuff that it wouldn't be able to even touch before. So there is tremendous progress, right? And it happened so fast that it may even be missed. I think one of the biggest things that I would say people kind of know on the inside and others don't is that already right now, it's not about the progress.
There are so many things ChatGPT or Gemini, any LLM, can do for you that people just don't realize. You can take a photo of something broken, ask how to repair it, it may tell you. You can give it college-level homework, and it will do it for you, probably. So that's absolutely amazing.
So there is an education gap to some extent?
Well, it just happened. You said Codex, right? Programmers are conservative a little bit. I still use Emacs from time to time. All the coding tools, like, okay, it will complete one line for me, but people are very like, this is my editor, I write code here. Now people are like, no, this is Codex, I ask it to do stuff, I will fix it later, right? But I think it's the recent few months when the transition happened from people using it sometimes, but rarely, to now basically this being how a lot of people work in coding.