Chain of thought
CoT, reasoning tokens, thinking out loud
In one sentence
Having a model write out its intermediate steps before the answer, which makes it markedly better at multi-step problems. Reasoning models are trained to do this by default.
Why it matters
A model has no scratchpad other than its own output: each token gets a fixed amount of computation, and the only way to get more thinking is to write more tokens. Written-out steps are those tokens, and they stay in the context for what follows. Reasoning models are trained to do this before answering, which is what the reasoning effort setting on those models controls. A caution: the visible steps are not always a faithful account of what produced the answer.
Sources
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