What are the key differences between OpenAI o1 and GPT-4o?

GPT-4o offers speed and affordability, with lower latency and costs around $5 per million input tokens and $15 per million output tokens, ideal for real-time chatbot tasks. OpenAI o1, priced at $15 per million input tokens and $60 per million output tokens, excels in complex reasoning, like math and advanced analytics, but is slower.

Which model is best for real-time chatbot applications?

GPT-4o is the top choice for real-time chatbots due to its low latency and fast response times—up to 30 times quicker than o1—making it perfect for customer service and instant interactions.

How do OpenAI o1 and GPT-4o compare in cost?

GPT-4o is more cost-effective at $5 per million input tokens and $15 per million output tokens, while OpenAI o1 costs $15 per million input tokens and $60 per million output tokens, reflecting its advanced reasoning capabilities.

When should I use OpenAI o1 instead of GPT-4o?

Opt for OpenAI o1 when your chatbot needs to handle complex reasoning tasks, such as advanced mathematical problem-solving or in-depth analysis, where precision trumps speed.

OpenAI o1 vs GPT-4o - Choosing the Right Model for Your Chatbot

Choosing between OpenAI's o1 and GPT-4o models for your business depends on your specific use case, as both models have distinct strengths and weaknesses.

If you are interested in selecting a model for your OpenAI Chatbot, you can start from our comprehensive guide.

We did a pilot with both models through APIs and a ChatGPT Plus subscription. After three weeks with the o1 model, we observed that GPT-4o and its mini variant provided more accurate responses and had the capability to search the internet for current data. OTOH, o1-mini lacked the internet search functionality. A notable advantage of the o1 model is its increased maximum token output of 65,000 tokens, nearly five times that of its predecessors.

o1 is really good in "here's all I know, process this thoroughly, and whenever you're ready get back to me with an answer and also tell me why" scenarios.

Performance and Capabilities

GPT-4o is generally favored for tasks requiring speed and efficiency. It excels in:

Customer Service: Ideal for powering chatbots that need to handle queries quickly, enhancing customer satisfaction through immediate responses.
Document Analysis: Efficiently processes large volumes of data, extracting key information from unstructured sources.
Marketing: Analyzes customer data to create personalized marketing strategies.

In contrast, OpenAI o1 is designed for more complex reasoning tasks. It is particularly effective in:

Mathematical Problem Solving: Demonstrates superior performance in complex math problems compared to GPT-4o.
Advanced Reasoning Tasks: Best suited for applications where depth of analysis and thorough problem-solving are critical, albeit at the cost of speed.

Speed and Cost

When comparing speed:

GPT-4o operates with lower latency, making it suitable for real-time applications. It is approximately 30 times faster than o1, which is crucial for businesses needing quick responses.
OpenAI o1, while slower (about 30 times slower than GPT-4o), offers a more deliberate approach to problem-solving, mimicking human-like reasoning processes.

In terms of cost:

GPT-4o is significantly more budget-friendly, costing around $5 per million input tokens and $15 per million output tokens.
OpenAI o1, on the other hand, comes with a higher price tag at approximately $15 per million input tokens and $60 per million output tokens, reflecting its advanced capabilities.

Recommendations

For most business applications where speed and cost-effectiveness are priorities, GPT-4o is the recommended choice. It provides robust performance across various tasks without incurring high operational costs. If your business requires tackling complex problems that demand deep reasoning—such as advanced analytics or intricate mathematical computations—then investing in OpenAI o1 may be justified despite its higher costs and slower response times.

Conclusion

Ultimately, the choice hinges on your specific needs:

Choose GPT-4o for speed, efficiency, and cost-effectiveness in everyday tasks.
Opt for OpenAI o1 if your use case involves complex reasoning where accuracy and depth are paramount.

Consider evaluating both models in a pilot project to see which aligns best with your operational requirements before making a final decision.

Here is a little lengthy article from OpenAI which explains this in more detail if you have more questions.