Question presented to candidate: "Most providers now offer 'reasoning' or 'thinking' models next to their regular ones. What actually makes a model a reasoning model, and how do you decide when it is worth using one in a product?"
What a strong answer should cover:
- A reasoning model is trained (largely with reinforcement learning) to generate a long internal chain of thought before its final answer; it is still the same next-token loop, spending more tokens at inference time
- Test-time compute: accuracy on hard multi-step problems improves with more thinking tokens or more samples, which is why there are effort or budget controls; OpenAI o1 (September 2024) and DeepSeek-R1 (January 2025, open weights) are the reference points
- Costs: thinking tokens are billed as output tokens even when hidden or summarised, they count toward the output cap, and they add latency before the first visible token
- When it pays off: multi-step maths, planning, hard debugging, complex constraint-following and agent planning; when it does not: extraction, classification, short chat, latency-critical paths
- How usage changes: give goals and constraints rather than "think step by step" scaffolding, set a generous output cap, many sampling parameters are not supported, and route only the hard traffic to it
Code / implementation expected: Optional β a cost and latency calculation with reasoning tokens, or majority-vote arithmetic, shows the trade-off; no model call is needed.