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🔬 Microsoft Research · November 2023

Orca 2: Teaching Models
When to Use Which Reasoning

Orca 1 taught small models to reason step-by-step. Orca 2 asks a harder question: what if chain-of-thought isn't always the right strategy? Cautious reasoning teaches the model to select the optimal approach per task — direct answer, step-by-step, recall from memory, or delegation — matching or beating models 5× its size on reasoning benchmarks.

🏢 Creator: Microsoft Research
🧱 Base: Llama 2 (7B & 13B)
📅 Released: November 2023
⚖️ License: Microsoft Research License
🪟 Context: 4K tokens
💾 Min RAM (INT4): 5GB (7B) / 8GB (13B)
⚖️
Microsoft Research License — read carefully

Orca 2 is released under the Microsoft Research License, which permits research and evaluation but restricts commercial use. Unlike Apache 2.0 models, you cannot deploy Orca 2 in a revenue-generating product or customer-facing service without separate licensing. For commercial deployments that want Orca-style reasoning, use Nous Hermes 2 (Apache 2.0) instead.

7B & 13B
Model Sizes
4
Reasoning Strategies
Llama 2
Base Model
AGIEval
Primary Benchmark
4K
Context Window
Nov '23
Release Date

From Explanation Tuning to Cautious Reasoning

Orca 1 established that training on GPT-4's reasoning traces — not just its answers — produces significantly better generalisation at small model sizes. The finding was clean: explanation tuning beats imitation learning, even at a 5× parameter disadvantage.

Orca 2 starts from a different observation: GPT-4 doesn't use chain-of-thought reasoning on every task. When you ask it what the capital of France is, it doesn't laboriously reason through the problem — it just answers. When you ask it to solve a complex math proof, it does reason step-by-step. The reasoning strategy is task-dependent.

Small models trained with standard explanation tuning tend to over-apply chain-of-thought — producing verbose reasoning traces even for tasks where a direct answer would be better. This wastes tokens, slows inference, and can actually reduce accuracy on recall tasks where the model second-guesses itself mid-trace. Orca 2's solution: teach the model to select the right strategy first.

Dimension Orca 1 Orca 2
Core innovation Train on reasoning traces, not just answers Train the model to select which reasoning strategy to use
Teacher model GPT-4 only GPT-4 (with strategy-selection augmentation)
Base model LLaMA 1 (13B) Llama 2 (7B and 13B)
Training approach Single reasoning style (chain-of-thought) Multiple strategies: direct, CoT, recall, delegation
Efficiency Always verbose reasoning traces Strategy-appropriate verbosity — concise when possible
License LLaMA 1 non-commercial Microsoft Research License (broader, still non-commercial)
Ollama availability Unofficial/community only ollama run orca2 — official support

The Four Reasoning Strategies

Orca 2 is trained to recognise which of four reasoning strategies is appropriate for a given input, and to apply that strategy rather than defaulting to chain-of-thought for everything.

⚡

Direct Answer

For tasks where the answer is unambiguous and reasoning adds no value. Used when overthinking would introduce errors.

"What is 7 × 8?" → "56" — not five paragraphs about multiplication.
🧠

Recall from Memory

For factual lookups where the answer exists in training data as a stored fact. No derivation needed.

"Who wrote Hamlet?" → "William Shakespeare" — retrieve, don't derive.
🔗

Chain-of-Thought

For genuinely complex multi-step problems where intermediate reasoning steps are necessary for correctness.

"If a train leaves Chicago at 9am travelling at 60mph and another leaves at 10am at 80mph, when do they meet?"
🤝

Delegation

For tasks outside the model's reliable competence — acknowledge the limit, suggest alternatives or request clarification.

"Translate this medical report into clinical Japanese" → acknowledge specialisation limits rather than hallucinate.
🔬
Why strategy selection matters for accuracy

Counter-intuitively, chain-of-thought can reduce accuracy on recall tasks. If a model knows that Paris is the capital of France, but it's been trained to always produce reasoning traces, it might generate intermediate reasoning steps like "France is a European country, its government is located in..." that introduce opportunities for error. Direct retrieval is more reliable for high-confidence factual recall. Orca 2's cautious reasoning framework explicitly addresses this failure mode.

🗺️ How Orca 2 Routes Tasks to Strategies

"What year did World War II end?"
→
Recall from Memory
"Is 2,847 divisible by 7?"
→
Direct Answer
"A factory produces 240 units/hour. After a 15% efficiency gain, how long to produce 3,500 units?"
→
Chain-of-Thought
"Summarise this 50-page legal contract and identify all liability clauses under EU GDPR"
→
Delegation / Clarification
"Analyse the systemic causes of the 2008 financial crisis"
→
Chain-of-Thought
"What's the boiling point of water at sea level?"
→
Recall from Memory

↑ This routing happens implicitly — the model learns to recognise task type from the training signal, not through an explicit classification step at inference time.

Benchmark Results

Orca 2's paper benchmarks it primarily against AGIEval (reasoning and problem solving), BigBench Hard (complex reasoning), and several academic task suites. The 13B variant is the flagship, though the 7B shows surprisingly strong results for its size.

Model Params AGIEval BigBench Hard MT-Bench MMLU
GPT-4 Unknown ~87% ~89% 9.1/10 86.4%
ChatGPT (GPT-3.5) Unknown ~61% ~70% 7.94/10 70.0%
Orca 2 13B 13B ~65% ~71% 7.2/10 60.4%
Orca 2 7B 7B ~54% ~63% 6.2/10 56.0%
Orca 1 13B 13B ~54% ~63% N/A N/A
Llama 2 Chat 13B 13B ~45% ~41% 6.27/10 53.9%
Llama 2 Chat 70B 70B ~54% ~51% 6.27/10 63.0%
Nous Hermes 2 13B 13B ~58% N/A 7.0/10 59.1%
📊
The 70B comparison result

Orca 2 13B matches or exceeds Llama 2 Chat 70B on AGIEval and BigBench Hard — models with more than 5× the parameters. This is the paper's headline claim, and it holds up on the specific benchmarks tested. It does not hold universally: Llama 2 70B outperforms Orca 2 13B on general conversation quality (MT-Bench) and creative tasks. The advantage is specific to structured reasoning.

Capability Profile

Structured reasoning
Excellent
Math word problems
Very good
Factual Q&A
Very good
Task routing accuracy
Very good
General conversation
Average
Code generation
Average
Long document (4K limit)
Limited

Available Variants

Orca 2 7B

microsoft/Orca-2-7b

Surprisingly capable for its size. Reasonable reasoning benchmark scores, fits comfortably on consumer hardware with INT4 quantisation (5–6GB RAM). Best choice when VRAM is the constraint.

⚡ Good for: RAM-constrained devices, fast inference

Orca 2 13B

microsoft/Orca-2-13b

The flagship variant. Matches Llama 2 Chat 70B on reasoning benchmarks. Requires 8–10GB RAM with INT4 quantisation. This is what most evaluations refer to when citing Orca 2 results.

⭐ Best: Reasoning tasks with adequate hardware

Running Orca 2 Locally

Ollama (Recommended)

Orca 2 has official Ollama support, making it the easiest Orca variant to run locally for research and experimentation.

bash — Ollama
# Pull and run Orca 2 (13B by default)
ollama run orca2

# Explicitly select 7B for lower RAM usage
ollama run orca2:7b

# 13B variant explicitly
ollama run orca2:13b
💡
Hardware requirements via Ollama

Orca 2 7B: 5–6GB RAM recommended (INT4). Runs on most modern laptops with 8GB unified memory.
Orca 2 13B: 8–10GB RAM recommended. Comfortable on 16GB systems; possible on 8GB with swap at reduced speed. See the deployment quickstart for platform-specific setup.

Prompt Format

Orca 2 uses the standard ChatML format, making it straightforward to integrate with any OpenAI-compatible library.

text — Orca 2 prompt format (ChatML)
<|im_start|>system
You are Orca, an AI language model created by Microsoft.
You are a helpful assistant.
<|im_end|>
<|im_start|>user
{user_message}
<|im_end|>
<|im_start|>assistant

Eliciting Cautious Reasoning Explicitly

text — System prompts for different strategy modes
# For reasoning tasks — encourage explicit strategy selection
You are Orca, a helpful AI assistant. Before answering, 
identify whether this question requires step-by-step reasoning, 
direct recall, or a simpler approach. Use the appropriate 
strategy rather than always showing your work.

# For structured analysis tasks
You are Orca, a helpful AI assistant. For complex problems,
break them into clear sub-steps and verify each before proceeding.
For simple factual questions, answer directly without unnecessary elaboration.

# For educational use — always show reasoning
You are Orca, a helpful AI assistant working as a tutor.
Always explain your reasoning step-by-step, even for simple problems,
so the student can understand the method.
🔬
Strategy selection is implicit, not a separate call

Unlike an agent framework where you'd explicitly route to different reasoning modules, Orca 2's strategy selection is baked into the model weights during training. The model implicitly classifies the task type and generates output appropriate to that type — you don't need to build routing logic yourself. The system prompt can nudge this behaviour but doesn't control it absolutely.

Using with Ollama's Python API

python — ollama library
import ollama

# Simple reasoning query
response = ollama.chat(
    model='orca2:13b',
    messages=[
        {
            'role': 'system',
            'content': 'You are Orca, a helpful AI assistant. Select the appropriate reasoning strategy for each task.'
        },
        {
            'role': 'user',
            'content': 'A company has 480 employees. After a merger, the workforce grows by 35% then shrinks by 20%. What is the final headcount?'
        }
    ]
)

print(response['message']['content'])

Honest Assessment

✓ Real Strengths

  • Best reasoning benchmarks at the 7B–13B scale as of its release
  • Strategy selection avoids over-verbose reasoning on simple tasks
  • Official Ollama support — trivial to run locally
  • Llama 2 base is more permissive than LLaMA 1
  • 7B variant competitive with much larger models on reasoning
  • Clear improvement over both Orca 1 and Llama 2 Chat on benchmarks
  • ChatML format — integrates cleanly with standard tooling

✗ Real Limitations

  • Non-commercial license blocks production deployment
  • 4K context window — severely limiting for document tasks
  • Llama 2 base is dated; Llama 3.x models show significantly better results
  • Average general conversation quality; reasoning-optimised only
  • Strategy routing isn't perfect — occasionally overthinks simple questions
  • No code-specialised variant
  • Not updated since November 2023

Who Should Use Orca 2

Use case Recommendation Reason
Research into reasoning strategies Orca 2 ✓ Canonical reference for cautious reasoning methodology
Structured analysis, math, logic Orca 2 ✓ Purpose-built for this; best 13B results on these tasks
Commercial deployment Nous Hermes 2 Apache 2.0; similar reasoning quality; fully commercial
General conversation / chatbot OpenChat 3.5 Better MT-Bench scores; more naturally conversational
Long document processing Llama 3.1 8B Instruct 128K context vs 4K — no comparison for document tasks
Best current reasoning model WizardLM 2 More recent, larger context, stronger overall benchmarks