The article discusses how recent advancements in AI, particularly with models like ChatGPT-5, have shifted from improving inherent reasoning capabilities to relying on external tools for problem-solving. This change has led to a stagnation in model enhancement, prompting a reevaluation of AI architectures and methodologies needed to foster genuine progress in reasoning and productivity within the industry.

Microsoft has launched new small language models (SLMs) Phi-4-reasoning, Phi-4-reasoning-plus, and Phi-4-mini-reasoning, enhancing AI capabilities for complex reasoning tasks while maintaining efficiency. These models leverage advanced training techniques and are designed to function in low-latency environments, making them suitable for a wide range of applications, including educational tools and productivity software. Microsoft emphasizes its commitment to responsible AI development through rigorous safety measures.