AI 2027

During the GPT-3 era there was plenty of organic text to scale into, and compute seemed to be the bottleneck. But we quickly exhausted it, and now we try other ideas - synthetic reasoning chains, or just plain synthetic text for example. But you can't do that fully in silico.

What is necessary in order to create new and valuable text is exploration and validation. LLMs can ideate very well, so we are covered on that side. But we can only automate validation in math and code, but not in other fields.

Real world validation thus becomes the bottleneck for progress. The world is jealously guarding its secrets and we need to spend exponentially more effort to pry them away, because the low hanging fruit has been picked long ago.

If I am right, it has implications on the speed of progress. Exponential friction of validation is opposing exponential scaling of compute. The story also says an AI could be created in secret, which is against the validation principle - we validate faster together, nobody can secretly outvalidate humanity. It's like blockchain, we depend on everyone else.

They clearly mention, take into account and extrapolate this; LLM have first scaled via data, now it's test time compute, but recent developments (R1) clearly show this is not exhausted yet (i.e. RL on synthetically (in-silico) generated CoT) which implies scaling with compute. The authors then outline further potential (research) developments that could continue this dynamic, literally things that have already been discovered just not yet incorporated into edge models.

Real-world data confirms their thesis - there have been a lot of sceptics about AI scaling, somewhat justified ("whoom" a.k.a. fast take-off hasn't happened - yet) but their fundamental thesis has been wrong - "real-world data has been exhausted, next algorithmic breakthroughs will be hard and unpredictable". The reality is, while data has been exhausted, incremental research efforts have resulted in better and better models (o1, r1, o3, and now Gemini 2.5 which is a huge jump! [1]). This is similar to how Moore's Law works - it's not given that CPUs get better exponentially, it still requires effort, maybe with diminishing returns, but nevertheless the law works...

If we ever get to models be able to usefully contribute to research, either on the implementation side, or on research ideas side (which they CANNOT yet, at least Gemini 2.5 Pro (public SOTA), unless my prompting is REALLY bad), it's about to get super-exponential.

Edit: then once you get to actual general intelligence (let alone super-intelligence) the real-world impact will quickly follow.

Of course you can get a lot of mileage via synthetically generated CoT but does that lead to LLM speed up developing LLM is a big IF.