A groundbreaking AI model, Hierarchical Reasoning Model (HRM), developed by Sapient Intelligence, proves smaller can be smarter. With only 27 million parameters, HRM tackles reasoning puzzles that stump massive models like ChatGPT. Unlike traditional Chain-of-Thought methods, which falter with missteps, HRM mimics the brain with two modules: a strategic “planner” and a rapid “worker.” This novel approach enables deep reasoning in a single forward pass. HRM has delivered stunning results. On the ARC-AGI benchmark, it outperformed larger models, and in extreme Sudoku and maze challenges, it excelled where others failed entirely. Its efficiency promises cheaper deployment, faster training, and innovative possibilities for local AI systems.