That's assuming that the same function is applied in the same way at each iteration.
Think about this: The sum total of the human-generated knowledge was derived in a similar manner, with each generation learning from the one before and expanding the pool of knowledge incrementally.
Simply adding a bit of noise and then selecting good outputs after each iteration based on a high-level heuristic such as "utility" and "self consistency" may be sufficient to reproduce the growth of human knowledge in a purely mathematical AI system.
Something that hasn't been tried yet because it's too expensive (for now) is to let a bunch of different AI models act as agents updating a central wikipedia-style database.
These could start off with "simply" reading every single text book and primary source on Earth, updating and correcting the Wikipedia in every language. Then cross-translate from every source in some language to every other language.
Then use the collected facts to find errors in the primary sources, then re-check the Wikipedia based on this.
Train a new generation of AIs on the updated content and mutate them slightly to obtain some variations.
Iterate again.
Etc...
This could go on for quite a while before it would run out of steam. Longer than anybody has budget for, at least for now!