The core observation is that organisms with an ability to model the Universe, even if imprecisely and in a tiny space-time neighborhood, increases the chances of survival. See the ubiqutous living beings with a nervous system. The hypothesis is that increased precision and/or size of the prediction bubble is correlated with survival fitness, which, in the limit, gives raise to beings with a God-like ability to predict the Universe. It's a relatively simple inductive argument.