Another article handwaving or underselling the effects of hallucination. I can't help but draw parallels to layer 2 attempts from crypto.
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On top of that -- rebranding "prompt engineering" as "context engineering" and pretending it's anything different is ignorant at best and destructively dumb at worst.
If you assume any kind of error rate of consequence, and you will get that, especially if temperature isn't zero, and at larger disk sizes you'd start to hit context limits too.
Ask a human to repeatedly execute the Tower of Hanoi algorithm for similar number of steps and see how many will do so flawlessly.
They didn't measure "the diminishing returns of 'deep learning'"- they measured limitations of asking a model to act as a dumb interpreter repeatedly with a parameter set that'd ensure errors over time.
For a paper that poor to get released at all was shocking.