conceptLanguage & Foundation Models~1 min readUpdated 2026-06-07#llms#reasoning#chain-of-thought#test-time-compute

Reasoning & test-time compute

A major recent shift: instead of only scaling training, you can scale inference — let the model generate intermediate reasoning before its final answer. Spending more tokens (more compute) at answer time measurably improves hard tasks.

From chain-of-thought to reasoning models

  • Chain-of-thought (CoT) prompting — asking the model to "think step by step" produces intermediate steps and improves multi-step problems. It works because generation is sequential: written-out steps become context the later tokens can build on (the model can't do unlimited hidden computation in one step).
  • Reasoning models — newer models are trained (often with RL on verifiable problems) to produce long internal reasoning before answering. They effectively do CoT natively and spend a variable amount of "thinking" per problem.

Test-time compute as a new scaling axis

The insight: for a fixed model, letting it think longer (more reasoning tokens, sampling multiple attempts and selecting the best) raises accuracy on math, code, and logic — a different lever than making the model bigger. Compute moved partly from pretraining to inference.

When it helps — and when it doesn't

Use reasoning for Skip it for
math, code, logic, multi-step planning simple lookup, classification, extraction
problems with verifiable steps latency-sensitive, high-volume calls

The costs are real: reasoning tokens mean higher latency and price, and on easy tasks the extra thinking adds cost with little gain (sometimes overthinking hurts). It also doesn't fix hallucination — a confident wrong chain is still wrong.

Reasoning trades latency and cost for accuracy. Spend it where the problem is genuinely hard; default to fast models elsewhere.

Connects to: in-context learning · chain-of-thought prompting · latency vs quality