Microsoft’s AI Leap: Orca-2 Sets a New Standard
The Breakthrough of Orca-2
In a significant development, Microsoft has unveiled Orca-2, the successor to its widely acclaimed Orca, a large language model (LLM). This new iteration not only matches the prowess of its predecessor and competitors like ChatGPT but introduces a revolutionary approach to training smaller LLMs with enhanced reasoning capabilities.
Orca-2’s Novel Training Methodology
Orca-2 employs a unique ‘step-by-step recall, then generate, then reason’ methodology. This allows it to use diverse reasoning techniques for various prompts, dramatically improving performance. Despite its relatively small size of 7 billion parameters, Orca-2 achieves or exceeds the output of models up to 10 times larger.
The Open Source Edge
An exciting aspect of Orca-2 is its open-source availability. This grants access to its architecture, encouraging broader utilization and innovation in the AI community. Researchers and enthusiasts can experiment with the 7, 13, and 23 billion parameter versions, which demonstrates Microsoft’s commitment to transparent AI development.
Synthetic Data: The Game Changer
The crux of Orca-2’s success lies in its training on a synthetic dataset, designed to simulate a range of reasoning techniques. This method not only scales AI training but also paves the way for rapid advancements towards Artificial General Intelligence (AGI).
The Llama Legacy
Orca-2 builds upon the foundations of Llama-2, inheriting some limitations but significantly improving upon them. The performance on benchmarks is impressive, showcasing its superior reasoning skills.

The Future of AI Training
The emergence of Orca-2 prompts a critical question: Will the future of AI training focus on synthetic data? As human-generated data reaches its limit, synthetic data offers an infinite pool for training models, possibly accelerating the journey to AGI.
The Bitter Lesson Revisited
The historical shift from human knowledge to computational power in AI development is exemplified by Orca-2’s approach. It suggests a future where AI can improve itself through synthetic data, reminiscent of AlphaGo’s journey to becoming the world’s best Go player.
Conclusion: A Synthetic Data-Driven AI Evolution
Orca-2 represents a potential paradigm shift in AI training, where synthetic data could become the primary resource. As we approach the limits of human-generated content, the focus may shift to these self-improving models, ushering in a new era of AI development.