I felt like the scaling laws were magical thinking, but apparently they work. However I still do not understand why we should expect exponential improvements due to this automated process. My intuition is that the first iteration of it should result in a noticeable capability increase (though I think these labs were already using a lot of AI to orchestrate training the current model anyway), and then the second iteration of it should be nearly identical in capability to the first, unless more data is involved, more compute is involved, or the model is bigger.
Fundamentally the current language-model approach is lacking in any general reasoning ability, so they are trying to mitigate this by using synthetic data and reinforcement learning to bake specific reasoning chains into the model, one domain at a time ... coding, math, hacking, three.js competence ...
The trouble with this is that there is little generalization in the utility of these baked-in reasoning chains from one domain to the next, so in the end this is not dissimilar to the CYC project's decades long attempt to encode all of human knowledge into a giant expert system... the hope is that if you make your collection of jagged narrow intelligences sufficiently large then it will look more like general intelligence, not a bed of nails.
I would assume that the gains from this type of test-time compute (and synthetic RLVR dataset) scaling will level out just the same as gains from human training set scaling eventually levelled out, and basically for the same reason - because you are tapping into a finite data pool, whether language itself, or reasoning steps isolated from that language, so at some point the incremental gains become increasingly small (10->20% is a doubling, 90->95% is just a ~5% gain).
It's not clear where all the different AI companies are currently focusing - on some of these narrow verticals, or on growing the forest of narrow intelligences. OpenAI's chief scientist, Jakub Pachocki, said that their current focus is on RSI(!) - improving the model in ways that will help them iterate faster in order to have a "fire meets fire" tool than can combat enemy AIs. It's not clear what this really means - what skill set makes an LLM more helpful in the process of building LLMs, but it seems to basically be process automation.
You can get exponential growth from completely ordinary feedback loops. You start with some amount of stuff, you do a series of steps and you end up with more of the same stuff you started with. As you keep going through the loop, the stuff you have grows exponentially. That's for example how exponential economic growth works.
Of course data, compute and model size are not held constant. You start with some money and use it to acquire researchers, data and compute, and have the researchers produce a big model and you use that model to get more money, and you use the additional money for more researchers, more data, and more compute to produce a bigger model. This is what has propelled exponential AI progress so far.
Recursive self-improvement is invoked to predict superexponential growth. The idea is that instead of only using the model to make more money, you add it to the researchers to speed up the loop, so not only is the money growing with every iteration, the iteration time also gets shorter, producing growth that is faster than exponential.
The problem with this simplistic prediction is that it assumes additive and multiplicative relationships of the form money = (researchers + AI)×compute_spend, but if doing more research paid off so reliably, you could also just hire more researchers, abstractly money = research_spend×compute_spend and with a balanced allocation of research and compute, you would get a money-squaring machine even without using AI for AI research.
And the reason this doesn't work in reality is that there are diminishing returns everywhere. You can also see this in the OpenAI post, where they write 7 times as much code to run 1.6 times as many experiments, and those additional experiments probably only result in minor improvements to model quality.
AI can compress AI nearly losslessly.