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Paper Breakdowns  /  Chain-of-Thought
Paper 04~7 min readNeurIPS 2022
Paper Breakdown

Chain-of-Thought
prompting, explained.

Ask a student to shout the answer to a hard word problem instantly and they'll flub it. Give them a sheet of scratch paper and they'll get it right. This 2022 paper found the exact same thing about language models — and the fix was as simple as showing them how to work things out step by step.

The delta

What changes here: the examples show the work

Rung 1, so the comparison is against the few-shot prompting it modifies, and the modification is almost absurdly small. Standard few-shot prompting shows the model a handful of question-and-answer pairs and then a new question. Chain of thought shows it question, worked reasoning, answer — and then the new question. Nothing else changes. No training, no gradient, no parameters, no architecture.

Why that should matter at all is the interesting part. A model answering immediately has to produce the answer in a single forward pass, so the amount of computation available is fixed by the architecture regardless of how hard the question is. Generating intermediate steps lets the model spend more forward passes on a harder problem, and lets each step condition on the written result of the last — externalising working memory into the context window, where it is exact, instead of holding it in activations, where it is not.

The second finding is the one that made the paper famous and is worth carrying up the ladder carefully. The benefit is not uniform across model sizes: below a certain scale, showing the reasoning does not help and can actively hurt, because a smaller model produces fluent chains that are wrong and then follows them. The gain appears at scale and appears sharply, which is where the vocabulary of emergent abilities attached to this result.

01

The one-leap problem

By 2022, big language models were fluent and knowledgeable, yet strangely bad at problems a careful ten-year-old could solve — multi-step arithmetic, word problems, chains of logic. A model prompted to answer straight away had to squeeze every step of the calculation into a single forward pass and blurt the result. On anything needing more than one step, it stumbled.

The failure wasn't knowledge. It was being forced to leap from question to answer with no room to work in between.

02

The big idea: show the working

The authors changed the prompt, not the model. In the few examples you show a model before asking your real question — the few-shot exemplars — they didn't just include the answer. They included the reasoning that leads to it, spelled out step by step. That trail of intermediate steps is the chain of thought.

Primed with a couple of examples of what good reasoning looks like, the model imitates the format: for your new question, it writes out its own steps before committing to an answer — giving itself the scratch paper it never had.

03

Same model, same question

"The cafe had 23 apples, used 20, then bought 6 more. How many now?"
Answer straight away
A: 27
✗ wrong
Chain of thought
Started with 23. Used 20, so 23 − 20 = 3 left. Bought 6 more, so 3 + 6 = 9.
A: 9 ✓ correct

Nothing about the model changed between these two panes — only whether it was allowed to think out loud. Breaking one hard leap into a handful of easy steps, each building on the last, is the entire trick.

There's a simple reason this compounds. If each reasoning step is right with probability p, the whole answer needs all k steps to land — pk. Answering in one shot means each hidden step is less reliable (no room to work), so its p is lower, and pk falls off a cliff:

The more steps a problem needs, the wider the gap — which is exactly where the paper found CoT helps most. The runnable version below makes that curve.

04

Why it only works at scale

The paper's most striking finding: chain-of-thought is an emergent ability. On small models it barely helps, and sometimes hurts — they produce reasoning that sounds right but doesn't hold together, and the wrong steps drag the answer down with them.

Then, somewhere past roughly 100 billion parameters, the curve bends sharply upward. Suddenly the reasoning is coherent, the steps are valid, and accuracy jumps. Reasoning wasn't something you could prompt into a small model; it appeared, almost like a phase change, only once the model was big enough.

Worth knowing

This was one of the clearest early examples of an "emergent ability" — a skill that's absent at small scale and appears abruptly at large scale — which reshaped how the field thought about what more compute actually buys.

05

Zero-shot: the magic phrase

A closely related follow-up found you often don't even need worked examples. Append five words — "Let's think step by step" — to a question, and a large model starts generating its own reasoning chain unprompted. Much of the benefit of chain-of-thought, unlocked by a single sentence.

06

The real results

On GSM8K, a benchmark of grade-school math word problems, chain-of-thought prompting on a 540B model more than tripled accuracy versus answering directly — turning a weak result into state-of-the-art, beating a fine-tuned model with a verifier. The same pattern held across commonsense and symbolic reasoning tasks.

PromptingGSM8K accuracy (540B)
Standard (answer directly)~18%
Chain-of-thought~57%

Same weights, same questions — the only change was letting the model show its working.

07

Why it still matters

Chain-of-thought reframed inference itself: a model that can spend more steps "thinking" before answering is more capable than one forced to reply instantly. That single insight seeded everything that followed — self-consistency (sample many chains, take the majority vote), tree-of-thought, and the modern reasoning models that are explicitly trained to generate long internal chains and spend extra compute at inference on hard problems.

When today's models "think" before they answer, they're standing on this paper. It's the moment the field learned that how you let a model compute can matter as much as how big it is.

Worth knowing

The practical takeaway holds even for small prompts: for any multi-step task, ask the model to reason before it answers. It's the highest-leverage, lowest-effort prompt change you can make.

Since then

What the authors admit, and what happened next

The paper is careful about something that its popular summary is not: the generated chain is not a trace of the model's computation. It is text the model produced, which influences what it produces next. Whether it describes the process that actually determined the answer is a separate empirical question, and later work on faithfulness found the two can come apart — models will produce a chain that does not reflect the features actually driving their answer, including cases where an answer is steered by something the chain never mentions. Reading a chain of thought as an explanation is therefore a mistake with a specific name, and it matters most where the stakes are highest.

The emergence framing was also contested, usefully. Schaeffer and colleagues argued that apparent sharp jumps are frequently artefacts of discontinuous metrics — score a multi-step task by exact match and smooth underlying improvement shows up as a sudden threshold, because partial credit is unavailable. That critique does not make the practical effect unreal, and it changes what it is evidence of.

How it held up: it is the substrate for everything above it on this ladder and for a large share of the post-training ladder too. The most remarkable thing about it in retrospect is the ratio — a change to the wording of a prompt, requiring no resources at all, that unlocked a capability people had assumed needed a different kind of model. That ratio is also why the rest of this ladder exists: once it was clear the capability was latent, the question became how much compute it was worth spending to extract it.

SOLVE IT YOURSELF

Why the gap widens with every step

Chain-of-thought first solves the cafeteria problem as an explicit trace — then models why writing steps out wins. If each step is right with probability p, the whole answer needs all k steps to land: pk. Answering in one shot makes each hidden step less reliable, so its curve collapses far faster. Run it and watch direct answering fall to 6% at eight steps while the written-out chain holds at 66% — the paper's core finding, in one exponent. Change the per-step reliabilities or the step count.

YOUR TASK

Write the body of solve_cafeteria. Everything else in the file is already written; this is the function the paper is about. Press ▶ Run to check it against the 5 assertions below — they start red.

WHAT IT HAS TO SATISFY — 5 ASSERTIONS
  1. The reasoning trace produces the correct answer
  2. Writing steps out raises per-step reliability
  3. Direct answering collapses faster than CoT over 8 steps
  4. The CoT advantage widens as the problem gets longer
  5. On a single step each equals its per-step reliability
CPython · WebAssembly
07

Why it still matters

Chain-of-thought made one deceptively simple discovery: if you let a model write out intermediate steps before its answer, it gets multi-step problems right far more often. Asking for the reasoning isn't cosmetic — the tokens of "thinking" are actually where the computation happens. A model forced to answer in one step has no room to work; give it space to lay out the steps and accuracy on arithmetic, logic, and word problems jumps.

The mechanism is that a Transformer does a fixed amount of compute per token. Reasoning in the open spreads a hard problem across many tokens, so the model can build on its own partial results instead of leaping to a conclusion. "Let's think step by step" works because it literally buys more computation aimed at the problem.

It also made model reasoning inspectable. When the steps are visible you can see where it went wrong, which is invaluable for debugging prompts and for trusting an answer — though with a caveat the field later sharpened: the written chain is not guaranteed to be the true cause of the answer. It can rationalize. Treat it as a useful window, not a perfect audit trail.

The line to today is direct and enormous. Chain-of-thought was the seed of test-time compute: spend more tokens thinking to get better answers. Modern reasoning models take it to its conclusion — training the model to produce long internal chains by default, then answer. Self-consistency (vote over many chains), tree-of-thoughts (branch and search over them), and tool-augmented reasoning all build on the same core move CoT introduced: make the reasoning explicit.

Check yourself

5 questions on this paper

Answer each one out loud before you open it. Recalling an answer is what makes it stick; recognising one you have just read is not. Your score is kept on this device.

What is chain-of-thought prompting?

Show answer

Chain-of-thought (CoT) prompting is a technique where you give a language model a few examples that include their step-by-step reasoning, not just the final answer. Prompted this way, the model produces its own reasoning steps before answering — and on multi-step problems in arithmetic, commonsense, and logic, that dramatically improves accuracy.

Why does chain-of-thought improve reasoning?

Show answer

Hard problems need several steps, but a model forced to answer immediately has to compress all that computation into one leap and often slips. Writing out intermediate steps gives the model room to break the problem into pieces, work through each one, and use its own earlier steps as scratch work — turning one impossible leap into a series of easy ones.

Does chain-of-thought work on small models?

Show answer

Largely no. The paper found chain-of-thought is an emergent ability: it barely helps — and can even hurt — smaller models, then produces large gains once models pass roughly 100 billion parameters. Small models write fluent but illogical reasoning; the ability to reason coherently appears only at scale.

What is zero-shot chain-of-thought?

Show answer

A follow-up finding showed you often don't even need worked examples — simply appending 'Let's think step by step' to a question nudges a large model into producing reasoning steps on its own. This zero-shot variant captures much of the benefit with a single phrase.

How does chain-of-thought relate to reasoning models like o1?

Show answer

Chain-of-thought showed that letting a model 'think' in intermediate steps unlocks reasoning. Modern reasoning models take that further by training the model to generate long internal chains of thought and spend more compute at inference time on harder problems — the CoT paper is the conceptual seed of that whole line of work.

Where this sits

Reasoning you can prompt, then train

It began as a prompting trick and ended as a training objective. Read in order, the progression from "let's think step by step" to a model trained to.

  1. 1Chain-of-Thought Prompting2022
  2. 2Self-Consistency2022
  3. 3Tree of Thoughts2023
  4. 4OpenAI o12024
  5. 5DeepSeek-R12025

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