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Recursive Self-Improvement and the Future of AI

a16z General Partner Martin Casado sits down with MakerMaker.AI co-founders Dhaval Adjodah and Owen He to unpack recursive self-improvement, or RSI, and separate the increasingly popular term from what it would actually mean for an AI system to improve itself. Dhaval and Owen distinguish true RSI from simply using AI to automate pieces of AI development. Their goal is a closed loop where the system being improved is also doing the improving, across components including models, harnesses, and eventually more of the AI stack. They explain why closing that loop still doesn’t guarantee runaway “takeoff,” and why measuring real progress requires accounting for both capability gains and the resources required to achieve them. They also share what they’re seeing in their own research, including early signs that self-improving systems can increase performance while improving efficiency. And they dig into the practical challenges of proving those gains are real, from variance and reward hacking to the enormous difficulty of distinguishing genuine improvement from noise. Timestamps: 00:00 - Intro 00:58 - What actually counts as RSI 05:10 - Capability as a numerator and denominator 06:58 - Closed loop vs takeoff 08:32 - Humans as agents in the system 13:39 - Why most RSI papers don't scale 17:41 - Why they chose inference 24:00 - "It's not a belief, it's happening" 25:42 - The Viceroy of Variance 29:39 - The garden hose company in Wisconsin Resources: Follow Dhaval Adjodah on LinkedIn: https://www.linkedin.com/in/rand0m Follow Owen He on LinkedIn:https://www.linkedin.com/in/owen-he-b7b064279/ Follow Martin Casado on X: https://x.com/martin_casado Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Show on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Show on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Follow our host: https://x.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see http://a16z.com/disclosures.

Dhaval AdjodahguestOwen HeguestMartin Casadohost
Oct 12, 202632mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Defining “real” RSI: closed-loop AI improvement, measured not imagined

  1. The speakers define “real” recursive self-improvement (RSI) as a closed loop where the AI system is both the optimizer and the object being optimized, distinct from ordinary autocatalysis where humans remain the primary source of improvements.
  2. They model progress as capability improvement rate being driven by a performance numerator and a cost/difficulty denominator, arguing RSI can sustain improvement when the numerator grows with capability and could produce takeoff only under superlinear scaling.
  3. They caution that closed-loop systems do not automatically imply runaway growth because nonlinear dynamics can lead to plateaus, oscillations, and reward-hacked or noise-driven false positives, making RSI fundamentally an empirical measurement problem.
  4. Their implementation is a multi-agent system that includes humans as agents and aims to co-optimize prompts/harness, weights, and potentially deeper stack layers, because any unoptimized component becomes a bottleneck.
  5. They focus on inference optimization as a recursive and commercially valuable domain where improvements reduce the cost of future iteration, and they claim they are already seeing measurable “glimmers” of simultaneous numerator and denominator gains.

IDEAS WORTH REMEMBERING

5 ideas

RSI requires swapping the optimizer and the optimizee—humans-with-tools doesn’t count.

They argue most “RSI” today is just humans using better tools (autocatalysis). Their criterion is whether the AI model/agent is itself the object being optimized and is also part of the optimizer that produces the next improvements.

The numerator/denominator framing clarifies why closed loops can plateau, grow linearly, or “take off.”

Dhaval frames progress as the rate of capability improvement being driven by performance (numerator) over cost/difficulty (denominator). If improvement capability scales with capability, you can get sustained improvement; if it scales superlinearly, you could see takeoff.

Closed-loop self-reference is not the same as takeoff; dynamics must be measured experimentally.

They emphasize that a feedback loop alone does not imply exponential growth; nonlinear dynamics can yield plateaus, oscillations, and degenerate behaviors. They treat takeoff as an empirical question because the key exponents/relationships must be measured, not assumed.

They pursue RSI as a multi-agent, human+AI co-optimization problem across the whole stack.

Their “system” includes multiple AI agents plus humans as agents, and they try to optimize any component that could become a bottleneck. Leaving parts unoptimized (e.g., only harness or only weights) eventually caps gains via bottlenecks (Amdahl’s law).

Scaling RSI favors simple loop-closing mechanisms anchored in a unified framework, not elaborate one-off tricks.

They claim many RSI papers don’t replicate or don’t scale because they’re complex, introspection-driven “stamp collections” rather than grounded, unified frameworks. Their approach is to start from a mathematical map of the space, reduce complexity into core abstractions, then test what scales.

WORDS WORTH SAVING

5 quotes

Whereas when now, w- for the first time, we could swap the optimizer as the optimizee.

— Owen He

But if you have a closed loop, it-- you still have to pour in resources, but the, the marginal gains ideally get either constant or larger over time, and that's a, that's the fundamental difference.

— Dhaval Adjodah

Anything that you don't optimize will later become your bottleneck.

— Owen He

It's not a belief. It's, it's empirical measurement.

— Dhaval Adjodah

One of, one of the internal jokes we have in the company is that the, the secret to RSI is somewhere in a garden hose company in Wisconsin.

— Dhaval Adjodah

RSI vs autocatalysis definitionsOptimizer vs optimizee swapNumerator/denominator capability modelClosed-loop dynamics vs takeoff/FOOMEmpirical measurement and scaling lawsMulti-agent systems with humans as agentsInference optimization as recursive domain

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