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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 ↗

CHAPTERS

  1. 0:00 – 0:58

    RSI as a real system: optimizing prompts → chips

    Dhaval and Owen open by framing recursive self-improvement (RSI) as building AI systems that can iteratively improve their own capabilities. They emphasize RSI can happen at multiple layers—from prompts and harnesses to model weights and even hardware—and their goal is to optimize across the whole stack.

    • •RSI defined as AI that improves itself, not just AI helping humans
    • •Self-improvement can target many stack layers (prompts, harness, weights, chips)
    • •They’re building a multi-agent RSI system rather than a single model loop
    • •They signal high confidence that meaningful RSI is already emerging
  2. 0:58 – 2:05

    Who they are and why they’re tackling RSI

    Martin prompts them to introduce their backgrounds and what led them into AI research. Dhaval describes a physics/RL path through MIT Media Lab; Owen describes an early fascination with theorem proving and later work at DeepMind.

    • •Dhaval: physics mindset, PhD in RL, building MakerMaker
    • •Owen: logic/theorem proving inspiration, PhD in continual/meta-learning
    • •Experience in cutting-edge research contexts (e.g., DeepMind)
    • •Motivation: pursue a hard, foundational problem rather than narrow tooling
  3. 2:05 – 4:41

    What actually counts as RSI vs. ordinary “AI builds AI”

    They draw a sharp boundary between RSI and broad “AI for AI” claims. The key test is identifying the optimizer and the optimizee: true RSI requires the system being improved to also be the improving agent, not just humans using better tools.

    • •RSI is an overloaded term; many pitches misuse it
    • •Core question: who is the optimizer, and what is the optimizee?
    • •Human-with-tools is autocatalysis, not self-improvement of the agent
    • •Historical tech progress accelerated itself, but humans were never the optimizee
  4. 4:41 – 6:50

    Capability as numerator/denominator: why closed-loop matters

    Dhaval proposes a control-theoretic framing: improving the rate of capability improvement depends on both performance gains (numerator) and cost/difficulty (denominator). In ordinary progress, the numerator is effectively fixed and you plateau; if capability improves the ability to improve, you can sustain constant or even exponential gains depending on the relationship.

    • •Closed-loop vs. “gap” systems: autocatalysis still needs humans to bridge the loop
    • •Capability improvement modeled as performance over cost/difficulty
    • •In standard systems, increasing difficulty drives plateau behavior
    • •If improvement capacity scales with capability, gains can become constant or exponential
  5. 6:50 – 8:44

    Closed loop doesn’t imply takeoff: empiricism, not FOOM hype

    Martin pushes on the common confusion between drawing a feedback loop and guaranteeing takeoff. They argue outcomes depend on nonlinear dynamics and unknown exponents, so RSI behavior must be tested empirically—especially given issues like reward hacking and missing learning theory.

    • •Nonlinear control systems can behave unpredictably (not just diverge)
    • •Exponent/feedback strength determines whether you plateau, grow linearly, or take off
    • •Deep learning lacks complete analytical learning theory; scaling laws are empirical
    • •Reward hacking and measurement complexity make RSI evaluation hard
  6. 8:44 – 9:27

    Humans as agents: hybrid multi-agent RSI and bottleneck logic

    Owen explains their RSI system isn’t purely automated; it’s a multi-agent setup where humans are treated as a special class of agent. They argue anything not optimized becomes the eventual bottleneck, so the system should be designed to recursively improve across components rather than isolating one.

    • •RSI system is multi-agent, not a single digital loop
    • •Humans are part of the agent set; the goal is hybrid recursive improvement
    • •Leaving components unoptimized creates future bottlenecks
    • •Optimizing the model is necessary but insufficient if other parts lag
  7. 9:27 – 13:42

    Avoiding self-deception: measuring the denominator (money, time, labor)

    They discuss how RSI claims can be misleading if improvements come mainly from pouring in more capital. Dhaval emphasizes disciplined accounting of costs—including human experimentation time—and shares their internal “bleeder board” to track experiment spend; Owen cites algorithmic efficiency gains on fixed hardware as real denominator progress.

    • •RSI must show improved outcomes without simply scaling resources
    • •Denominator should include man-hours, iteration count, and experimentation burden
    • •Company discipline: track cost/time systematically (the “bleeder board”)
    • •Algorithmic/technique improvements can drastically cut training cost on the same GPU
  8. 13:42 – 17:41

    Why most RSI papers don’t scale: unified math vs. “stamp collections”

    Dhaval and Owen argue many RSI papers are complicated, intuition-driven, and fail under real scaling tests. Their approach starts from a grounded mathematical framework that maps the space, reduces complexity into reusable abstractions, and prevents local improvements from harming the global system.

    • •Many RSI ideas replicate poorly or collapse at scale despite sounding compelling
    • •Simplicity that truly closes the loop tends to scale better
    • •They build from first principles to identify key abstractions vs. Rube Goldberg systems
    • •Unified framework ensures improvements in one component don’t degrade others
  9. 17:41 – 19:30

    Why they chose inference as the proving ground for RSI

    They describe selecting problem areas “closest to AI itself,” where gains compound both capability and efficiency. Inference efficiency is economically urgent (everyone wants to serve models) and technically recursive: faster inference accelerates the very process of finding further inference improvements.

    • •They target domains highly recursive with AI’s own operation
    • •Inference efficiency improves both numerator (capability) and denominator (cost)
    • •Faster inference enables faster search/iteration on further optimizations
    • •Serving modern models is a major near-term market need
  10. 19:30 – 24:08

    Hands-off recursion: agents choose what to optimize (even the master prompt)

    Martin probes how the system decides what to improve and whether a single model optimizes itself. They describe a multi-LLM setup where the agent (not the team) selects optimization targets, and even the “master prompt” is itself subject to recursive improvement.

    • •They use multiple LLMs with different roles rather than one model-only loop
    • •The system selects which components and models to optimize based on effectiveness
    • •They aim to be “hands-off,” letting the agent drive improvement choices
    • •The master prompt and the “what to improve” mechanism are both dynamic and co-evolving
  11. 24:08 – 25:02

    “It’s happening” + the metric problem: what does takeoff even look like?

    Dhaval claims they’re seeing measurable “glimmers” of RSI progress, while Owen notes that takeoff depends on what metric you track. Bounded metrics (like benchmark accuracy) can hide accelerating progress, so detecting takeoff requires choosing the right measures and understanding where limits apply.

    • •They report months-long growth in empirical results (not belief-based)
    • •Takeoff detection depends on selecting unbounded or appropriate progress metrics
    • •Benchmark accuracy saturates at 100%, masking acceleration
    • •Physical limits imply eventual asymptotes, even if growth is rapid beforehand
  12. 25:02 – 27:51

    Variance, noise, and degenerate dynamics: making RSI results trustworthy

    They explain why RSI evaluation is exceptionally difficult: LLMs are stochastic, hardware can introduce subtle differences, and closed-loop systems can oscillate or exhibit strange behaviors. Their response is heavy empirical rigor—dedicated roles, repeated experiments, and adversarial attempts to break results.

    • •They delay releases until replication confidence is high; many public claims are “noise”
    • •Dedicated role: “Viceroy of Variance” to attack results and find flaws
    • •Hundreds of runs build intuition about variance vs. real signal and reward hacking
    • •Closed-loop systems can oscillate; multidimensional noise complicates conclusions
  13. 27:51 – 31:16

    Bounds and bottlenecks: Amdahl’s law, physical-world latency, and the “Wisconsin hose”

    They discuss how RSI speedups depend on the slowest evaluation components, especially when the physical world is involved (wet labs, clinical trials). Dhaval offers a metaphor: transformative RSI might come from solving an unglamorous workflow problem—like discovering a key empirical “fudge factor” hidden in an overlooked industry setting.

    • •Intelligence is multi-dimensional; different domains will accelerate differently
    • •Amdahl’s law: the slowest component sets the ceiling on end-to-end speedup
    • •Physical evaluation loops (atoms, labs, trials) constrain takeoff vs. digital domains
    • •Metaphor: key RSI breakthrough may be an empirical discovery in an unexpected workflow
  14. 31:16 – 32:06

    Martin’s synthesis: full-stack RSI, numerator/denominator, and what’s next

    Martin summarizes their thesis: this is true RSI (not autocatalysis), spanning harness + weights within a broader system, and aiming to improve both performance and cost. They close with a promise to share more soon.

    • •Reiteration of their definition: system improves itself across the full loop
    • •System scope includes harness and weight updates (and broader stack over time)
    • •Goal is simultaneous numerator and denominator improvement
    • •They tease near-term updates and end the discussion

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